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Britain's FTSE falters as financial and commodity stocks fall

* FTSE 100 down 1.6, hits three-week low

* Mining and energy stocks lose ground

* Brexit worries weigh on market (Adds detail and updates prices)

By Kit Rees and Sudip Kar-Gupta

LONDON, June 10 (Reuters) - Britain's top share index fell on Friday, hit by a drop in major financial and commodity stocks, while lingering uncertainty over the vote this month on European Union membership also weighed on the market.

The blue-chip FTSE 100 index was down 1.6 percent at 6,135.57 points by 1103 GMT, hitting a three-week low.

Losses were broad-based, with banking stock Barclays (Swiss: BARC.SW - news) , paper and packaging company Mondi (LSE: MNDI.L - news) and airline easyJet all down over 3 percent.

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Shares (Berlin: DI6.BE - news) in insurer Standard Life (LSE: SL.L - news) fell 2.3 percent after investment bank UBS (LSE: 0QNR.L - news) cut its price target on the group.

A retreat in metals and oil prices also knocked back the shares of mining and energy companies such as BP and BHP Billiton.

London copper ticked lower on Friday, and was facing its largest weekly loss in more than a month as headwinds from a likely mid-term U.S (Other OTC: UBGXF - news) . rate hike that have boosted the dollar added to pressure from tepid physical demand in top user China.

"With (Other OTC: WWTH - news) commodity markets showing weakness in China, we have seen a second day of weakness in the FTSE," said Cornhill Capital (Other OTC: CGHC - news) stockbroker Lewis Jones.

Several traders added they did not expect the FTSE to make much progress in the build-up to the "Brexit" June 23 vote on Britain's membership of the EU, given persistent uncertainty over the result.

Although the latest betting odds on website Betfair show the implied probability of a British vote to stay in the European Union has risen to almost 78 percent, opinion polls remain split on the matter.

"The heightened fears over the impact a Brexit could have in the UK, Europe, and global economy has renewed a wave of jitters that has weighed on global sentiment," said FXTM research analyst Lukman Otunuga.

Among the risk-off sentiment, precious metals miner Randgold Resources gained 0.5 percent while Fresnillo (Amsterdam: FN6.AS - news) was up 0.2 as perceived safe-haven assets were in demand.

Outside of the blue chips, Deutsche Bank (LSE: 0H7D.L - news) 's downgrades to PageGroup and Hays (LSE: HAS.L - news) sent both stocks around 6.6 percent lower, the worst performing mid-cap stocks.

Deutsche Bank cut its rating on the pair to "sell" from "hold", saying while staffing and recruitment companies have already de-rated, it is too early to say that a downturn is "in the price" until the earnings downgrades have started to come through.

ADVISORY- Reuters plans to replace intra-day European and UK stock 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 format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions or feedback on this, please email mike.dolan@thomsonreuters.com.

Mike Dolan, Markets Editor EMEA. (Editing by Tom Heneghan and Janet Lawrence)