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Friday, November 09, 2007
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Nov 7 2007 10:02PM
Mexico stocks drop sharply after GM posts loss

(Recasts first paragraph; adds details, background)

MEXICO CITY, Nov 7 (Reuters) - Mexican stocks fell sharply on Wednesday after a huge quarterly loss by U.S. auto giant General Motors <GM.N> stirred worries about the health of the economy in the United States, Mexico's top trading partner.

The benchmark IPC stock index <.MXX> fell 1.08 percent to 30,101 points, with bellwether telecom America Movil <AMXL.MX> leading the decline.

The losses at the largest U.S. auto maker come as the U.S. economy is grappling with a housing market downturn and the fallout from the subprime mortgage crisis.

The peso <MXN=> <MEX01> weakened 0.39 percent to 10.7485 per dollar. The benchmark government 10-year peso bond <MX10YT=RR> lost 0.06 of a point in price to bid 100.222, pushing its yield up one basis point to 7.96 percent.

Shares of America Movil <AMXL.MX>, Mexico's dominant cell phone operator, dropped 1.28 percent to 33.18 pesos. Its New York traded shares <AMX.N> gave up 1.88 percent to $61.71. (Reporting by Jason Lange and Lizbeth Salazar; Editing by Theodore d'Afflisio) (([email protected]; 52 55 5282 7153; Reuters Messaging: [email protected])) Keywords: MARKETS MEXICO/

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