EMERGING MARKETS-Latam stocks down as Europe debt concerns weigh

* Euro zone debt crisis weighs on riskier global assets

* Mexican stocks could drop if slip below key support

* Brazil’s Bovespa dips 0.29 pct, Mexico’s IPC 0.7 pct
(Updates to afternoon)

By Michael O’Boyle and Luciana Lopez

MEXICO CITY/SAO PAULO, Jan 10 (BestGrowthStock) – Resurgent worries
about a euro zone debt crisis weighed on Latin American stocks
on Monday, as investors shed riskier assets around the world.

The MSCI Latin American stocks index (.MILA00000PUS: )
retreated 0.99 percent, after posting a drop last week to start
out the year.

Investors fretted about European sovereign debt on Monday
after word Portugal faced market and peer pressure to get help
from the European Union and International Monetary Fund. The
European Commission denied bailout discussions. [ID:nLDE7080FG]
and [ID:nBRU011239]

“The market really is not falling much for so much bad
news,” said Gerardo Roman, head of stock trading at brokerage
Actinver. “We have had almost four months of gains, we should
see at least a one-quarter retracement. This is not very
healthy, and I am recommending taking profits.”

Investors dumped riskier assets globally, including
equities and the euro, which fell to its lowest point since
mid-September before recovering to a session high.

“Brazil is still considered a riskier market, and we wind
up suffering accordingly,” said Luiz Nunes, director of
Claritas Wealth Management in Sao Paulo.

Investors also looked to the launch of earnings season in
the United States, the world’s largest economy and a major
regional trading partner.

Aluminum maker Aloca (AA.N: ) will kick off the fourth
quarter earnings season after market close on Monday. U.S.
corporate earnings may handily beat estimates following
stronger than expected data during the fourth quarter.

Mexico’s IPC index (.MXX: ) slid 0.7 percent to 38,330.86,
touching its lowest point since the close of last year.

Carlos Gomez, a technical analyst at brokerage Invex, said
Mexican stocks could see a deeper sell-off if the IPC falls
below 38,200, the 23.6 percent Fibonacci retracement from its
mid-November to early January rally.

Shares of telecom giant America Movil (AMXL.MX: ) gave up
0.77 percent, as the country’s leading retailer, Walmex
(WALMEXV.MX: ) declined 1.34 percent.

Brazil’s benchmark Bovespa stock index (.BVSP: ) lost 0.29
percent in the afternoon, tracking what could be a third
straight session of losses.

Bank shares fell in Sao Paulo, with Itau Unibanco
(ITUB4.SA: ), Brazil’s largest private-sector bank, down 1.22
percent. Shares of Bradesco (BBDC4.SA: ) lost 1.57 percent, and
Banco do Brasil (BBAS3.SA: ), Latin America’s largest bank by
assets, slipped 1.26 percent.

Retailer Lojas Americanas (LAME4.SA: ) pared morning losses
to slip 1.02 percent. The company on Monday denied a media
report it was looking to buy the shares of Internet subsidiary
B2W (BTOW3.SA: ) that it does not already own. B2W shares gained
4.59 percent. [ID:nN10157300]

Chile’s IPSA index (.IPSA: ) retreated 0.97 percent. Banco
Santander Chile (STG.SN: ) gave up 3.87 percent.

Retailers also dropped, with Falabella (FAL.SN: ) down 1.79
percent and Cencosud (CEN.SN: ) off 2.06 percent.