MEXICO CITY: Latin American stocks fell on Monday as concerns of a possible shutdown of the US government hit global markets, while stocks in Brazil were also hurt by bets that interest rates could remain high after the central bank raised its inflation outlook.
Profit-taking on a regional rally this month has hurt stocks in recent days, but Mexico's main index still recorded its best month since January while Brazil's Bovespa marked its biggest monthly gain since last December.
* US lawmakers continued to wrangle on Monday about a funding bill for the federal government. A lack of an agreement by the end of the day would likely cause the government to shut down at least briefly.
* Brazil's benchmark Bovespa stock index fell 2.61 percent to close at 52,338.19 points. The index has slumped during the last two weeks, but it still notched a near 4.7 percent gain in September.
* Investors bet Brazil's policymakers could keep interest rates higher for longer than expected after the country's central bank increased its inflation forecast for 2014 to 5.7 percent from 5.4 percent and the bank's policy director said there is still "plenty of work" to be done in monetary policy to stabilize prices.
* Brazil's central bank this year has raised its benchmark interest rate from 7.25 percent to 9 percent to contain inflation even as the economy struggles to regain steam after a slowdown last year. Higher interest rates can slow growth and hurt the prospects for companies.
* Mining firm Vale SA dropped 1.87 percent and Itau Unibanco Holding SA, Brazil's largest non-government bank, lost 2.36 percent.
* Shares of OGX Petroleo e Gas Participacoes SA, the oil company controlled by Brazilian tycoon Eike Batista, fell 25 percent to its lowest price ever.
OGX stock has lost about 99 percent of its value from a 2010 high since it has been unable to produce as much oil as initially forecast. The firm is expected to file for bankruptcy protection within a couple of weeks.
* Shipbuilder OSX Brasil SA, OGX's sister company in Batista's EBX Group holding firm, dropped 14.4 percent. The company is also widely expected to file for bankruptcy protection in the coming weeks.
* Mexico's IPC index fell for the third straight session, losing 1.76 percent as miner Grupo Mexico shed 3.46 percent and billionaire Carlos Slim's telecommunications firm America Movil dropped 1.52 percent. The IPC posted a nearly 1.8 percent rise for the month.
* Mexico's stock exchange, which has seen a record amount of stock issuance this year, could see up to five more stock offerings in 2013 on top of four already in the works, the bourse's chief executive Luis Tellez told Reuters on Monday.
* Chile's IPSA index fell 1.27 percent as shares in industrial conglomerate Copec lost 2.4 percent. The IPSA gained about 5.4 percent during the month.
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