EMERGING MARKETS-Latam stocks drop on U.S. debt concerns


* Brazil shares drop 0.82 pct on thin volumes

* Mexico stocks down 1.12 pct

MEXICO CITY, Oct 7 (Reuters) - Latin American stocks

declined on Monday, tracking global markets on renewed concerns

about stalled fiscal talks in the United States.

Brazil's benchmark stock index slipped 0.82 percent, as

shares of Brazilian oil producer OGX Petróleo e Gas

Participações SA fell 13 percent.

The company is meeting with U.S. creditors in New York on

Monday in a bid to jump-start rescue talks while banks prepare

to arrange an emergency loan if no deal is reached, sources with

knowledge of the situation told Reuters.

Mexico's IPC stock index fell 1.12 percent, its

biggest dip in a week, while Chile's bourse edged down

0.69 percent.

Trading volumes remained low in the Brazilian bourse as

investors cautiously watched the standoff between Democrats and

Republicans over the U.S. debt ceiling.

U.S. House Speaker John Boehner vowed on Sunday not to raise

the debt ceiling without a "serious conversation" about what is

driving the debt, while Democrats said it was irresponsible and

reckless to raise the possibility of a U.S. default.

"There was a glimmer of hope for some progress in the

weekend. But that didn't happen, and as Boehner closed the doors

for now, markets are on a waiting mode," said Gustavo Mendonca,

an economist with Saga Capital in Rio de Janeiro.

Stocks of Mexico's phone company America Movil

fell 1.27 percent, dragging most on the index, while Chilean

retailer Falabella weighed on Chile's main index by

dropping 1.57 percent.

Latin America's key stock indexes at 2335 GMT:

Stock indexes daily % YTD %

change change


MSCI LatAm 3,350.65 -0.34 -11.77

Brazil Bovespa 52,417.1 -0.82 -14.00


Mexico IPC 40,451.1 -1.12 -7.45


Chile IPSA 3,812.86 -0.69 -11.36

Chile IGPA 18,781.1 -0.5 -10.86


Argentina MerVal 4,923.96 1.41 72.51

Colombia IGBC 14,071.0 0.18 -4.38


Peru IGRA 15,551.3 0.13 -24.62


Venezuela IBC 1,754,45 0.38 272.15


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