Latin American stocks slipped early on Friday, hurt by investor reluctance to take on positions ahead of the weekend as a number of big global economic questions remain unanswered. The MSCI Latin American index slid 0.17 percent, despite time in positive territory early in the session.
Investors are cautious as a number of key global questions remain unanswered, said Luiz Nunes, director of Claritas Wealth Management in Sao Paulo. Markets have been have unnerved by factors ranging from talk of a sovereign debt default by Greece to the arrest of former International Monetary Fund chief Dominique Strauss-Kahn in New York for alleged attempted rape.
Brazil's benchmark Bovespa stock index edged up 0.17 percent in choppy trading but stayed near what Nunes called the psychologically key level of 62,000 points. Erosion of that support could accelerate losses, he said. Despite recent drops taking the Bovespa to a better than 10 month low, "long-term investors are waiting for more solid outlooks," said Rossano Oltramari, chief analyst for XP Investimentos.
Mexico's IPC index dipped 0.21 percent, trading within its range of the previous session. The index briefly crossed above its 14-day simple moving average before again falling back from that level. Chile's IPSA index dropped 0.18 percent and touched a better than two-week low. The index closed below its 14-day simple moving average in the previous session, suggesting a potential loss of momentum in upcoming sessions.