EMERGING MARKETS-Mexican peso, stocks fall on oil price slump
MEXICO CITY, Feb 8 (Reuters) - Mexico's peso sank on Monday and stocks fell, dragged down by fears of a global economic slowdown and a drop in the price of oil, a key export for Latin America's second-largest economy. Brazilian markets were closed for the Carnival holiday. Global oil markets fell 3 percent to settle down for a third straight day on worries that U.S. crude stockpiles had reached record highs, while a Saudi-Venezuela meeting to boost prices showed little progress. Mexico's peso tumbled more than 1 percent to 18.6750 per dollar, slumping for a third straight day toward a recently set record low of 18.80 per greenback. The central bank sold $400 million in two auctions to support the currency. Due to the sharp drop in oil prices, Mexican Finance Minister Luis Videgaray said Mexico should prepare for budget cuts next year and that state oil giant Pemex was already working to curb its own spending. Mexico's IPC index slid 1.05 percent to 454.82 points, hit by a slump in shares of Cemex <CMXCPO.MX, which fell 7.46 percent, cutting into big gains last week after it reported a surprise fourth-quarter profit. Latin American stock indexes and currencies at 2250 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 734.13 -0.74 -7.56 MSCI LatAm 1732.24 -1.11 -5.33 Brazil Bovespa 40592.09 Closed -6.36 Mexico IPC 42774.85 -1.05 -0.47 Chile IPSA 3651.39 -0.14 -0.78 Chile IGPA 17963.23 -0.12 -1.04 Argentina MerVal 11400.34 -0.18 -2.35 Colombia IGBC 8701.74 -0.06 1.81 Venezuela IBC 14372.64 -2.03 -1.48 (Reporting by Alexandra Alper; Editing by Dan Grebler)
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