Latin American stocks were near flat on thin volume on Friday as investors headed into the holiday weekend eyeing 2012 as tepid US data cooled expectations and Europe's financial woes weighed. The MSCI Latin American stock index edged up 0.29 percent.
The index has been battered by worries about the direction of the euro zone and is on track to loose 20 percent this year. As conditions worsened in Europe and the crisis threatens to drag down the global economy, investors looked to the United States to support growth.
US consumer spending was weak in November and a gauge of business investment was also down for a second month. But signs of improvement in the housing market and a string of positive economic reports on manufacturing and jobs signals a slow recovery in the world's largest economy. .
"The US numbers were good, but the fact that no negative news came out of Europe probably helped more," said Joao Pedro Brugger, who helps oversee 150 million reais ($80.6 million) at Florianopolis, Brazil-based Leme Investimentos. Brazil's Bovespa index added 0.62 percent, set to end the year down 16 percent. The index is expected to remain volatile next week on low volume as the end of the year approaches, added Brugger.
Preferred shares of state-controlled energy giant Petrobras added 0.32 percent. The stock may be on an upward swing after a two-year decline, as the market sees less government interference in the company's operations, Brugger said. Mexico's IPC index edged down 0.07 percent and is on track to fall more than 3 percent for the year.
Latin America's top cola bottler, Femsa, advanced 1.27 percent but the index was weighed down by plastics maker Mexichem, falling 1.36 percent. Mexichem raised its offer for Dutch rival Wavin by 11 percent to 505 million euros ($659.79 million), winning the company's support to start due diligence in January.
Chile's IPSA index ended near flat, slipping 0.06 percent and on track for a year-end loss of more than 14 percent. Banco Santander Chile gained 1.1 percent. On Thursday, Central banks in Chile and Brazil took measures to boost liquidity as their local economies slow in the face of a worsening sovereign debt crisis that is deterring bank lending.