(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. See the bottom of the report for more details)
MILAN, June 17 (Reuters) - European shares rose in early trading on Friday, helped by a rebound in the region's beleagured banking sector, with traders attributing gains partly to the suspension of the EU referendum campaigns in the UK.
The shooting of a pro-EU British lawmaker on Thursday has caused shock across the nation prompting both sides of the Brexit camps to halt canvassing voters.
Worries that Britain, the world's fifth-largest economy, could quit the EU after June's 23 referendum have dominated markets this week and driven investors towards safe-haven assets such as gold and German bunds and away from stocks.
The pan-European STOXX 600 and FTSEurofirst 300 indexes both rose 1.3 percent by 0719 GMT, although they remained on track to end the week with a loss.
Banks rose 2.6 percent as they rebounded from heavy losses seen in the previous session when Brexit risks and new signs that interest rates would stay low for longer compounded the uncertainty already surrounding the sector.
The implied probability of a Remain vote in Britain's vote rose to 65 percent late on Thursday, according to Betfair odds.
Ericsson was among the top losers on FTSEurofirst after a Swedish daily said the telecom gear maker is being investigated by U.S. authorities over possible corruption related to its business in China. Ericsson spokesperson declined to comment on the report.
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.
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Mike Dolan, Markets Editor EMEA.
Reporting by Danilo Masoni, Editing by Vikram Subhedar