Mexican stocks extended sharp losses on Friday as fears about an imminent downgrade of euro zone countries hit riskier assets around the world.

The IPC stock index fell 2.06 percent to 36,552 points, just above a key support level at 36,500.

The drop to the support could spur some bargain hunting at these levels, as the IPC appears to be in a solid uptrend. However a break of the 36,500 level could bode for deeper losses, analysts said.