EMERGING MARKETS-Brazil real hit by Moody's concern, Mexico peso slumps
(Recasts with peso losses on oil slump, updates prices) By Bruno Federowski SAO PAULO, Dec 10 (Reuters) - Brazil's real sank and stocks fell on Thursday on concern Moody's Investors Service will cut the country's debt ratings to junk, while Mexico's peso weakened to an 11-week low as oil prices dropped to their lowest since 2009. The Brazilian real bid 1.7 percent weaker and the benchmark Bovespa stock index fell more than 1 percent after Moody's warned it may downgrade the country's Baa3 rating. Risks of political turmoil have escalated after the lower house opened impeachment proceedings against President Dilma Rousseff, Moody's said. Many traders had prepared for another downgrade into junk following Standard & Poor's September decision. "The event of losing two investment grade ratings is widely anticipated as political crisis and stagflation continues with no improvement on restoring the fiscal anchor," said Siobhan Morden, head of Latin America fixed-income strategy at Nomura Securities in New York. Moody's also cut the rating of Petroleo Brasileiro SA, or Petrobras, deeper into junk, citing weak oil prices and a stalled asset sale program. Shares fell 2.6 percent. The Mexican peso weakened 0.8 percent as oil prices fell on concerns of global supply glut, while a stronger dollar weighed on commodities. Mexico is a major crude oil producer and exporter to the United States. Mexico's central bank sold $200 million in an auction to support the peso. Latin American stock indexes at 2230 GMT: Latin American market prices from Reuters Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 789.02 -0.78 -17.49 MSCI LatAm 1914.51 -1.09 -29.81 Brazil Bovespa 45630.709 -1.04 -8.75 31 Mexico IPC 42447.77 0.12 -1.62 Chile IPSA 3564.32 0.14 -7.44 Chile IGPA 17625.5 0.13 -6.60 Argentina MerVal 13106.529 -1.47 52.77 Colombia IGBC 8029.09 1.18 -30.99 Venezuela IBC 14885.17 1.57 285.75 (Additional reporting by Miguel Angel Gutierrez in Mexico City; Editing by James Dalgleish)
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