*

S&P 500 futures, STOXX 600 fall, Nikkei leads Asia lower

*

Chinese economy grows 4.5%, retail soft but industry solid

*

Dollar slips on yen and Swiss franc, as euro edges up

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Japan's PM calls snap general election

(Updates for European afternoon trading)

By Samuel Indyk and Wayne Cole

LONDON, Jan 19 (Reuters) - Global stocks dropped and the

dollar eased against the safe-haven yen and Swiss franc on

Monday after U.S. President Donald Trump threatened additional

tariffs on goods imported from European nations that oppose his

planned takeover of Greenland.

Gold and silver prices jumped to ‌new record peaks, while oil

dipped on concerns about what a possible trade war between the

U.S. and Europe could mean for global growth and demand.

U.S. cash equity markets are closed on Monday for Martin

Luther ​King Jr. Day, although S&P 500 and Nasdaq futures

both dropped over 1.2%.

In Europe, the STOXX 600 index fell 1.2%. Blue-chip

indexes in Frankfurt, Paris ‍and London

were down 0.4% to 1.7%.

Japan's Nikkei fell 0.7%, and MSCI's broadest index

of Asia-Pacific shares outside Japan was ⁠little

changed.

Trump said he would impose additional ⁠10% levies from

February 1 on goods imported from Denmark, Norway, Sweden,

France, Germany, the Netherlands, Finland and Britain, rising to

25% on June 1 if no deal on Greenland was reached.

Major European Union ‌states condemned the tariff threats as

blackmail, and France proposed responding with a range ​of

previously untested economic countermeasures. The EU and Britain

had agreed trade deals with the U.S. last year.

"There is obviously a response (in financial markets) to the

new tariff threats," said George Lagarias, chief economist at

Forvis Mazars.

"It's highly likely that the White House will ⁠use the threat

of tariffs consistently, even when deals have previously been

agreed."

The EU's ‍retaliation options include ​a package of its own

tariffs on 93 billion euros ($108 billion) of goods imported

from the U.S. that was suspended for six months in early August,

and measures under an Anti-Coercion Instrument that could hit

U.S. services trade or investments.

The tariff threats should also make for a ‍fraught few days

at Davos as leaders from around the world gather in Switzerland

at the World Economic Forum, including a large U.S. group led by

Trump.

DOLLAR NOT SUCH A SAFE-HAVEN

In currency markets, the euro recovered from a seven-week

low, rising 0.4% to $1.1641.

"The market reaction that we have seen so far is more on the

back of the geopolitical risk than the tariff threat," said

Tommy von Brömsen, FX strategist at Handelsbanken.

"Typically you see dollar strength in the wake of increased

geopolitical risk but now we see dollar weakness as it is

originating from the U.S.," von Brömsen said, adding that the

uncertainty could cause investors to ​diversify away from ‍U.S.

assets.

Sterling clawed its way back up to $1.3422 after

initially dipping in Asian trade, while safe-haven currencies

also rose. The dollar eased 0.7% to 0.7965 Swiss francs

, and 0.2% to 157.88 yen.

Investors largely shrugged off an announcement from Japanese

Prime Minister Sanae Takaichi to dissolve parliament ​on Friday

ahead of a snap general election to be held on February 8, as

she looks to shore up her coalition's fragile majority.

"The Bank of Japan's response will be critical, given PM

Takaichi's expressed preference for cooperation and softened

central bank independence," said Scotiabank chief FX strategist

Shaun Osborne.

The BoJ meets on Friday and is widely expected to maintain

its policy rate at 0.75% after a rate hike in December.

The dollar index, which measures the currency against

six peers, was lower on Monday.

The cash U.S. Treasury market was shut, but 30-year bond

futures fell 19 ticks.

Gold again proved to be a safe harbour, rising as high as

$4,689 an ounce, while silver climbed to $94.08.

CHINA GROWTH SLOWS

China's blue chips ​were little changed after data

showed annual economic growth slowed to 4.5% in the December

quarter, though that still topped forecasts.

Industrial output also beat market expectations thanks to

strength in exports, but disappointing retail sales underlined

weak domestic demand.

Oil prices were little changed as civil unrest in Iran

subsided, with the market also tracking the demand picture

should the trade war over Greenland escalate.

Brent was down just ‍0.1% at $64.04 a barrel, while

U.S. crude was flat at $59.41.

($1 = 0.8611 euros)