MEXICO CITY - A powerful 6.7 magnitude earthquake shook Mexico on Saturday, killing at least two people, knocking out lights in parts of the capital and sending people rushing into the streets.

There were no immediate reports of severe damage or injuries in Mexico City but emergency services said one person was killed when a house collapsed in Iguala, a small city between the capital and the tourist resort of Acapulco.

Another person was killed when a rock fell on a small van on the Mexico City-Acapulco highway.

"I was dreadfully afraid, I thought it was never going to end," said Laura Gonzalez, who was drinking in a bar in the capital at the time of the quake, which lasted 40 seconds.

A severe earthquake in 1985 killed thousands of people and wrecked parts of Mexico City, and many residents live with the fear of a repeat.

"I was on the fifth floor when I felt it. It was a very strong shake," said Amor Lajud. "My dogs started barking. I just rushed out for the exit and got out.

Lajud lives in an apartment building in the fashionable Condesa neighborhood of Mexico City, which suffered serious damage in the 1985 quake.

Shoppers at a popular department store in the Condesa district rushed out to the street, some of them crying and shouting, and traffic lights were out at several intersections, causing traffic jams.

People stand on a sidewalk outside a building in Mexico City Dec 10, 2011 after an earthquake. [Photo/Agencies]