EMERGING MARKETS-Latam stocks drop on U.S. double-dip worries

* U.S. durable goods orders, new home sales weigh

* Oil prices in Petrobras capitalization could come soon

* Mexico’s IPC down 0.59 pct, Bovespa off 1.08 pct
(Recasts, adds comments, updates prices)

MEXICO CITY/SAO PAULO, Aug 25 (BestGrowthStock) – Latin American
stocks on Wednesday extended a slide to a sixth session, their
longest in three months, as weaker-than-expected U.S. data led
a global sell-off on fears of a fading economic recovery.

The MSCI Latin American stocks index (.MILA00000PUS: ) lost
0.95 percent in afternoon trade. The index has not fallen six
sessions in a row since mid-May.

New U.S. single-family home sales unexpectedly fell in July
to their slowest pace on record, and orders for durable goods
were weak. [ID:nN25121445]

Those data followed a plunge in existing home sales the
previous session.

“There are worries about the U.S. economy for sure. That’s
what’s driving markets across the board,” said Kathryn Rooney
Vera, director of macroeconomic research at Bulltick Capital
Markets.

The world’s largest economy is also a major influence on
Latin America, consuming the lion’s share of Mexican exports.

“What’s happening here is a deceleration, but the
probability of a double-dip recession is very low,” Rooney Vera
added. “It’s time to increase exposure.”

Mexican stocks underperformed last year, and Brazil remains
resilient to pressure from a dragging U.S economy, she said.

Mexico has the closest trade ties in the region to the
United States and could be hurt the most by a U.S. slowdown. A
report on Wednesday showed the country’s unemployment rate rose
to 5.7 percent in July after shrinking the two previous months.
[ID:nN25128916]

“We are going to see a big slowdown in the United States
during the third and fourth quarters, and logically, in Mexico
as well,” said Gerardo Copca, a strategist at consultancy
MetAnalisis in Mexico City.

Mexico’s IPC index (.MXX: ) shed 0.59 percent, off session
lows as some U.S. stocks (Read more about the stock market today. ) found technical support.

Telecom giant America Movil (AMXL.MX: ) dropped 1.53 percent
and miner Grupo Mexico (GMEXICOB.MX: ) fell 1.99 percent.

Brazil’s benchmark Bovespa stock index (.BVSP: ) declined
1.08 percent. The index has lost about 3.7 percent over the
past four sessions.

State-controlled energy company Petrobras (PETR4.SA: ) gave
up 0.69 percent. Investors have dumped the stock this year as a
massive capitalization plan has generated more questions than
answers.

Petrobras and government representatives were meeting on
Wednesday to hammer out the price of crude reserves to be used
in an oil-for-shares swap as part of that plan.
[ID:nN24270199]

Mining giant Vale (VALE5.SA: ), the world’s biggest producer
of iron ore, declined 1.26 percent.

In Chile, the blue-chip IPSA index (.IPSA: ) fell 1.12
percent, only its second straight session of declines.

Shares of industrial conglomerate Copec (COP.SN: ), the
index’s top-weighted stock, moved down 1.72 percent.

Retailer Cencosud (CEN.SN: ) lost 3.26 percent while its
rival Falabella (FAL.SN: ) retreated 1.33 percent.
(Reporting by Michael O’Boyle and Luciana Lopez in Sao Paulo;
Editing by Diane Craft) (([email protected];
+5255-5282-7153; Reuters Messaging:
[email protected]))

EMERGING MARKETS-Latam stocks drop on U.S. double-dip worries