* U.S. raises stakes in China trade war
* Wall Street dips, but tariff effect muted
* Asian, European stocks fall, safe-havens gain broadly
* Copper, zinc slide and oil retreats
By Hilary Russ
NEW YORK, July 11 (Reuters) - U.S. stocks extended losses on Wednesday, set to snap their four-day winning streak, and metals prices slumped as U.S. threats of tariffs on an additional $200 billion worth of Chinese goods pushed the world's two biggest economies closer to a full-scale trade war.
U.S. President Donald Trump's threat overnight of 10 percent tariffs on another $200 billion of Chinese goods dampened hopes that Washington will eventually step back from the escalating row. clock now starts ticking on a two-month period of public comment before the levies are imposed. Trump has said he may ultimately target more than $500 billion worth of Chinese goods - roughly the total amount of U.S. imports from China last year.
U.S. stocks fell but were not hit as hard as in Shanghai, where shares .SSEC closed 1.78 percent lower and the yuan CNY= weakened toward last week's 11-month lows.
"Unfortunately the markets haven't come to grips with the current levels of trade policies and tariffs," said Art Hogan, chief market strategist at B. Riley FBR in New York.
"Concerns over trade and trade wars are really having an adverse effect, less so on the U.S. markets than the international markets, but it is certainly taking a bite." Dow Jones Industrial Average .DJI fell 195.89 points, or 0.79 percent, to 24,723.77, the S&P 500 .SPX lost 17.65 points, or 0.63 percent, to 2,776.19 and the Nasdaq Composite .IXIC dropped 34.64 points, or 0.45 percent, to 7,724.56.
In Europe, shares extended losses after Trump kicked off a NATO summit in Brussels by accusing Germany of being a "captive" of Russia. .EU
Australia's dollar, often seen as a proxy for China's economic fortunes due to Australian raw materials exported there, was 1.09 percent lower. AUD=D4 /FRX
Industrial metals copper, zinc and lead all slumped as much as 4 percent to their lowest levels in about a year over worries that the dispute could dent China's commodity-hungry economy. MET/L
Copper CMCU3 lost 3.12 percent to $6,135.00 a tonne.
Three-month aluminum on the London Metal Exchange CMAL3 lost 1.41 percent to $2,060.50 a tonne.
Brent crude futures LCOc1 nosedived, settling at $73.40 per barrel, down $5.46 or 6.92 percent. U.S. crude oil futures CLc1 settled $3.73, or 5.03 percent, lower at $70.38 per barrel.
Wall Street's S&P 500 stepped back from the six-month high it neared on Tuesday as it rode a wave of optimism about positive U.S. corporate earnings. .N
Morgan Stanley (NYSE:MS) told clients in a research note on Wednesday that the trade conflict is "creating earnings noise and eroding gains from fiscal stimulus, which we think was already in the price."
The dollar index .DXY rose 0.6 percent.
The safe-haven Japanese yen weakened 0.94 percent versus the greenback at 112.03 per dollar.
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https://reut.rs/2L7D8Ls Trade war hit to equity markets
https://reut.rs/2L8nZtk GRAPHIC-Global assets in 2018
http://tmsnrt.rs/2jvdmXl GRAPHIC-Emerging markets in 2018
http://tmsnrt.rs/2ihRugV GRAPHIC-World FX rates in 2018
http://tmsnrt.rs/2egbfVh GRAPHIC-MSCI All Country World Index Market Cap
http://tmsnrt.rs/2EmTD6j
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