* Dollar near lowest since November 2016 vs yen
* Trump's tariff threat met with warnings of retaliation
* Italian exit polls point to hung parliament
* Japan futures, S&P E-Minis ease in early trade Monday
By Swati Pandey
SYDNEY, March 5 (Reuters) - U.S. stock futures slipped and the safe-haven yen rose on Monday amid fears of a global tradewar, while the euro was volatile after results of exit polls forItaly's elections pointed to a hung parliament.
A centre-right coalition is set to win the most seats inItaly's parliament ahead of the anti-establishment 5-StarMovement, according to the exit polls, although it was unlikelyto produce an outright winner. euro EUR= rose to a two-week high of $1.2365 after5-Star failed to win a clear majority, but talk the party couldform a coalition government soon dragged it back to $1.2310.
Supporting the euro was the revival of Germany's grandcoalition over the weekend, meaning Chancellor Angela Merkel'sconservatives will form a new government more than five monthssince the country's inconclusive election. yen got a lift from safe-haven flows as risk sentimentsoured after U.S. President Donald Trump proposed tariffs onimported steel and aluminium, rattling financial markets.
The dollar fell for a fourth straight session to go as deepas 105.40 yen, but was slightly above Friday's low of 105.23, alevel not seen since November 2016. JPY=
Stock futures pointed to a weak start for Asia, with S&Pe-minis ESc1 and Dow futures 1YMc1 down 0.5 percent eachwhile Nikkei futures NKc1 were off 0.4 percent.
Australian shares .AXJO slipped 0.2 percent in earlytrading.
"It seems that investors are willing to bet that the U.S.economy is the loser in a trade war started by the White House,"said Sean Callow, currency strategist at Westpac.
"There seems to be lots of chatter for a 5-Star-NorthernLeague majority. The European Central Bank's upbeat narrativeshould be reinforced on Thursday, encouraging speculatorsalready long euros to top up their positions."
Wall Street had a late rebound on Friday as investors whowere initially spooked by the prospect of a global trade warclung to hopes that Trump was just rattling sabres as anegotiating tactic.
News over the weekend suggested, however, that Trump wasgoing ahead with his plan, while there was no indication thatallies would be excluded from the tariffs planned on importedsteel and aluminium.
Canada and Mexico have threatened retaliation, and theEuropean Union said it would apply 25 percent tariffs on about$3.5 billion of imports from the United States if Trump carriedout his threat. says the tariffs are needed to protect domesticindustries against unfair competition from China and elsewhere.
"Despite staging a comeback, major U.S. indexes sufferedtheir worst week since early February," said James McGlew,executive director for corporate stockbroking at Perth-basedArgonaut.
"A number of other fears linger as investors reassess theprospects for continued global growth, brace for the possibilityof a broader trade war and await the outcome of a parliamentaryelection in Italy."
In commodities, Brent crude was up 38 cents at $64.75 abarrel while U.S. light crude CLc1 edged up 42 cents to$61.67.
Spot gold XAU= was a tad firmer at $1,323.10.
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