European shares drop after disappointing US jobs data

* Pan-European index ends down 0.9 pct

* U.S (Other OTC: UBGXF - news) . jobs data disappoints

* Accor (EUREX: 485822.EX - news) up on report Jin Jiang plans to hike stake

* Autos, banks lead sectoral fallers (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). Adds details, closing prices)

By Atul Prakash and Danilo Masoni

LONDON/MILAN, June 3 (Reuters) - European shares fell on Friday after much weaker U.S. jobs data than expected, while Accor soared on reported plans by a Chinese rival to raise its stake in the hotel group.

The U.S. economy created the fewest number of jobs in more than five years in May, suggesting weakness in the labour market and dashing expectations of a interest rate hike this month.

The FTSEurofirst 300 fell 0.9 percent to its lowest point in one week and a half. The index fell 2.4 percent for the week after gaining for the previous three weeks running.

"The US non-farm payroll data was crazy and completely unbelievable and this is the last set of important data before the Fed meeting," said Naeem Aslam, chief market analyst at Think Forex.

Economists now expect the Fed to wait until July before raising rates, meaning that any monetary policy decision in the world's biggest economy will be made after a UK vote on whether to leave the European Union takes place in three weeks time.

Europe's auto sector index fell 2.3 percent, making it the worst-performing sector, as reduced expectations of an imminent US rate hike weakened the dollar and sent the euro rallying to a four-week high. A stronger euro is a disadvantage for the export-oriented sector.

Banks followed with a 2.2 percent drop.

In the sector, Banco Popolare (Amsterdam: PB8.AS - news) fell as 5.2 percent to touch a record low after Italy's fourth-largest bank priced its 1 billion euros rights issue.

Accor shares rose 6.7 percent - the top gainer on the FTSEurofirst. French newspaper Le Figaro reported that Jin Jiang was considering increasing its Accor holding to 29 percent. Accor declined to comment.

Commodities stocks were in demand, with the European basic resources index rising 1.7 percent, as the lower dollar pushed up metal prices.

Airbus fell 3.5 percent after Qatar Airways canceled its first Airbus A320neo jet due to delays in deliveries.

Today's European research round-up

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. (Additional reporting by Danilo Masoni in Milan; Editing by Tom Heneghan)