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* Pan-European indexes down 1 percent
* Financials hit by low rates prospects
* Essentra plunges after profit warning
By Danilo Masoni
MILAN, June 9 (Reuters) - European shares fell for a secondstraight day on Thursday weighed down by continued weaknessamong financial sector stocks, while Essentra plungedafter a profit warning.
The pan-European STOXX 600 and FTSEurofirst 300 indexes were both down around 1 percent by 0846 GMT.
Despite this, shares in DONG Energy jumped asmuch as 10 percent after the Danish utility and wind farmdeveloper sealed the biggest European stock market flotationthis year.
Some investors cited the recent strength of the euro as a negative factor for European equities as well as cautionahead of a UK vote later this month on whether to remain in theEuropean Union.
"The weaker dollar is overall bad for European companies and... the Brexit vote means there will be a lot of uncertaintiesin the mid term," said Jerome Schupp, head of research at SYZAsset Management in Geneva.
Fading expectation of a U.S rate hike triggered by a weakerthan expected jobs report last Friday have sent the dollar to afive-week low against a basket of currencies this week. The eurohas also strengthened but was down slightly on Thursday.
Schupp said expectations the Federal Reserve would not liftinterest rates any time soon had weighed on financial stocks,especially the big European banks with a global business.
The STOXX 600 Bank sector index, which has been theworst sectoral performer so far this year, was down 1 percent,with Deutsche Bank, BNP Paribas andBarclays down 1.2-1.5 percent.
Profitability in the sector is being hurt by the EuropeanCentral Bank's ultra low interest rates, a policy which has beencriticised by German politicians including Finance MinisterWolfgang Schaeuble.
On Wednesday, sources told Reuters that Commerzbank was examining the possibility of hoarding billions ofeuros in vaults rather than paying a penalty charge for parkingit with the ECB.
Commerzbank shares fell 2 percent.
Vodafone fell 4.5 percent, making it the secondbiggest loser on the FTSEurofirst, after it traded withoutentitlement to its latest dividend payout.
Among the biggest fallers on the STOXX 600, Essentra fell 27 percent after it warned of lower full-yearprofit, citing challenging market conditions in filter productsand delays in some large projects.
Today's European research round-up
ADVISORY- Reuters plans to replace intra-day European and UKstock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia formatfrom 0600 London time through the 1630 closing bell, it willinclude the best of our market reporting, Stocks Buzz service,Eikon graphics, Reuters pictures, eye-catching research andmarket zeitgeist. Breaking news and dramatic market moves willcontinue to be alerted to all clients and we will continue toprovide a short opening story and comprehensive closing reports.
If you have any thoughts, suggestions orfeedback on this, please email mike.dolan@thomsonreuters.com.
Mike Dolan, Markets Editor EMEA.
(Reporting by Danilo Masoni; Editing by Mark Potter)
