2012.05.31 16:18:37 Chicago Business Barometer Signals Economy On Edge Of Recession

--IPC stock index down 0.7% in early trade --Peso weakens to MXN14.2780/USD --String of disappointing US data weighs on markets By Amy Guthrie Of DOW JONES NEWSWIRES MEXICO CITY (Dow Jones)--Mexican stocks were lower early Thursday after a string of disappointing data from the U.S., Mexico's biggest trade partner. The IPC index of Mexico's most-traded shares was recently down 281 points, or 0.7%, to 37790 points on volume of 30 million shares traded worth 800 million pesos ($56 million). In the U.S., ADP Inc.'s read on private-sector hiring was disappointing, jobless claims are rising and economic growth in the first quarter was slower than first estimated. The Mexican peso was also losing ground early Thursday, at MXN14.2780 to the U.S. dollar compared with MXN14.1465 at the close Wednesday. Mexican research firm MetAnalisis warned in a morning note that pressure on the peso could further limit gains in Mexican equities as a weaker currency would make the shares less attractive. Local brokerage Vector recommended that investors remain cautious and liquid due to the complicated global scenario. Vector said it expects some increase in trading activity in the latter half of Thursday's session as investors adjust positions at the month's end and to reflect the rebalancing of the IPC stock index. Among Mexican blue-chip shares in early trade, wireless carrier America Movil was down 1.4% to MXN16.75, cement maker Cemex was off 0.9% to MXN7.72, retailer Walmex gave back 1.9% to MXN35.82 and financial group Banorte was ahead 2.8% to MXN65.10. Banorte-Ixe Chairman Guillermo Ortiz said Wednesday that the bank isn't likely to acquire Banco Bilbao Vizcaya Argentaria's Mexican pension business, which is for sale, due to restrictions on market share for the Mexican pension funds known as Afores. -By Amy Guthrie, Dow Jones Newswires; 5255-5980-5177; amy.guthrie@dowjones.com (END) Dow Jones Newswires May 31, 2012 10:18 ET (14:18 GMT)