* Brazil Bovespa down 0.25 pct, Mexico IPC falls 0.23 pct
SAO PAULO, Oct 14 (Reuters) - Latin American stocks fell on
Monday as U.S. policymakers remained unable to strike a deal to
avert a potential default, sapping investor demand for riskier
The MSCI Latin American stock index slipped
0.31 percent, its first drop in three sessions.
Brazil's benchmark Bovespa index snapped a three-day
rally while Mexico's IPC index fell its most in nearly a
U.S. policymakers must raise the government's borrowing
authority in order to avoid a default later this week. Still,
equities markets have been supported by hopes that the deadlock
prompts the Federal Reserve to delay cutting back its economic
Brazil's benchmark Bovespa stock index fell
slightly, losing 0.25 percent to 53,015.99, although the index
fluctuated between negative and unchanged throughout the
"It's likely that we're going to see a day with reduced
trading volume, considering the impasse in the United States,
which is putting investors on the defensive," said Silvio Campos
Neto, an economist with Tendencias Consultoria in Sao Paulo.
Shares of homebuilder Gafisa SA fell 2.25
percent, contributing most to the index's losses, while
state-run oil company Petroleo Brasileiro SA, known
as Petrobras, lost 0.5 percent.
Shares of telecommunications firm TIM Participaçoes SA
slipped 1 percent. TIM's chief executive told a local
newspaper on Monday that the company is not for sale, denying
reports that Telecom Italia SpA wants to sell its 67
Mexico's IPC index fell 0.23 percent to 40,880.80.
Shares of conglomerate Alfa dropped 1.9 percent,
contributing most to the index's fall, while lender Grupo
Financiero Banorte lost 1.33 percent.
Chile's IPSA index retreated for the first session
in three as shares of retailer Cencosud fell 1.16
Latin America's key stock indexes at 1341 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI LatAm 3,403.35 -0.31 -10.11
Brazil Bovespa 53,015.99 -0.25 -13.02
Mexico IPC 40,880.80 -0.23 -6.46
Chile IPSA 3,824.22 -0.34 -11.09
Chile IGPA 18,832.11 -0.24 -10.62
Argentina MerVal 5,241.88 1.47 83.65
Colombia IGBC 14,240.31 0.59 -3.23
Peru IGRA 15,475.29 0.09 -24.98
Venezuela IBC 1,829,905.