Mexico peso and stocks drop on global worries

(Adds detail on stocks, bonds, peso, quote)

MEXICO CITY, May 25 (BestGrowthStock) – Mexico’s peso currency and
stocks weakened on Tuesday on worries about the euro zone
banking sector and concerns over tensions on the Korean
peninsula.

The peso (MXN=: )(MEX01: ) was off by 0.19 percent at 13.04 per
dollar in afternoon trade, trimming earlier losses of more than
2 percent.

Leading Latin American wireless operator America Movil
(AMXL.MX: ), controlled by billionaire Carlos Slim, was down 0.36
percent at 30.18 pesos.

Mexico’s IPC benchmark stock index (.MXX: ) fell 0.41 percent
to finish the session at 30,634.17 pesos.

North Korean leader Kim Jong-il told his military the
country may have to go to war if the South attacks, with angry
rhetoric rising on both sides in recent weeks. [ID:nSGE64O03B]

“We’re not sure how to incorporate the Korea conflict in
the market. That is making markets moving toward risk
aversion,” said one trader.

Investors also worried over the euro-zone’s banking sector
after the weekend takeover of a local lender by Spain’s central
bank.

Shares of Cemex (CMXCPO.MX: ) (CX.N: ), the world’s No. 3
cement maker, fell 0.97 percent to 13.22 pesos.

The Mexican government’s peso bonds were more resilient,
with the yield on the 10-year bond down 10 basis points to
7.408 percent.

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(Reporting by Lorena Segura and Noe Torres)

Mexico peso and stocks drop on global worries