MercoPress. South Atlantic News Agency

Euro troubles and slower growth in China and EU hit Latin American markets

Bovespa lost ground fearing softer demand for commodities

Latin American stocks fell to an eight-month low on Monday triggered by concerns that the Euro zone debt problem was deepening and signs of slower growth in China. The region’s largest market Brazil’s Bovespa ended at its lowest since July 2010

Besides uncertainties about Greece, Standard & Poor's cut Italy's rating outlook and Spain's ruling Socialists suffered a setback in elections, raising concerns about the government's ability to implement austerity measures.

Also weighing down was slower economic growth in the Euro Zone and China in the second quarter.

China is Brazil's top trading partner. Fears that global growth could be slowing have helped spur a sharp sell-off in commodities that has hit Latin America's materials producers.

Brazil's benchmark Bovespa stock index fell 0.4%, but the gauge managed to pare steeper losses to close above the 62,000 level. Investors have also been leery of Brazilian stocks due to concerns that the central bank will need to keep hiking interest rates to fight inflation.

Rising interest rates have strengthened Brazil's currency, cutting into exporter profits and cheapening the imports they compete with at home.

On Monday, state-run oil company Petrobras fell 1.63% and steel maker Usiminas lost 1.69%. Mexico's IPC index. fell 0.24% but the gauge managed to find support above the 34,800 level, holding above its lowest level since October that it hit last week.

Shares in Mexican billionaire Carlos Slim's America Movil rose 0.64%, managing a second session of gains as the stock recovers from its lowest price since March 2010.

Chile's IPSA index .IPSA slid 0.43% as pulp producer CMPC lost 1.31%.

The IPSA has risen about 8% since the start of March, while Brazil's benchmark index is down about 7% in the same period.