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* FANG stocks fall
* China to halt additional 25 pct tariffs on U.S.-made cars
* Costco slips after qtrly gross margins drop
* Merck slips on deal for French co
* Futures fall: Dow 0.78 pct, S&P 0.80 pct, Nasdaq 0.97 pct
* U.S. retail sales surge in November (Adds comment, adds details, updates prices)
By Medha Singh
Dec 14 (Reuters) - U.S. stocks were set to drop sharply at the open on Friday as weak economic data from China and Europe exacerbated global growth fears and added to nerves over the U.S.-China trade talks.
Equity futures fell about 0.8 percent after data showed weak monthly retail sales growth and industrial output in China, with sluggish Euro zone business expansion piling on more pressure.
Investors also shrugged off news that Beijing would suspend additional tariffs on U.S.-made vehicles and auto parts for three months starting Jan. 1 and data that core U.S. retail sales accelerated in November.
"Focus has shifted from just the U.S.-China trade war to what's going on in the global economy and what that means for earnings for the U.S. corporations in the 2019," said Art Hogan, chief market strategist at B. Riley FBR in New York.
"When you have slowdown in both China and Europe, whether they are related or not, it will impact the sales of S&P 500 companies."
Adding to the economic gloom, a Reuters poll showed that the risk of a U.S. recession in the next two years has risen to 40 percent, while expectations of interest rate hikes by the Federal Reserve has slumped for 2019.
The so-called FANG group of high-growth stocks fell before the bell, with Facebook Inc, Amazon.com Inc, Netflix Inc and Alphabet Inc dropping between 1.18 percent and 1.64 percent.
27 of the 28 Dow Industrial components trading premarket were in the red.
At 8:44 a.m. ET, Dow e-minis were down 192 points, or 0.78 percent. S&P 500 e-minis were down 21.25 points, or 0.8 percent and Nasdaq 100 e-minis were down 65.75 points, or 0.97 percent.
Trading has been volatile this week and the market has failed to hold on to the opening gains in magnitude or direction for the full session on concerns ranging from U.S.-China trade talks, interest rates, a flattening U.S. Treasury yield curve to uncertainty about Brexit.
Among other early movers, Starbucks Corp shed 3.8 percent after the coffee-chain reaffirmed its fiscal 2019 forecast.
Cisco Systems Inc slipped 2.2 percent after Instinet moved to sidelines on the company's stock, citing weak IT spending in 2019.
Costco Wholesale Corp dropped 5.1 percent after the warehouse club retailer reported a fall in quarterly gross margin.
Merck and Co fell 1.6 percent after announcing a deal for privately held French company Antelliq Group.
(Reporting by Medha Singh in Bengaluru; Editing by Sriraj Kalluvila)