Market Support Is On Its Way As Buybacks Restart

By Michael Msika, Bloomberg Market Live reporter and strategist

With the end of the earnings season, European companies are about to resume share buybacks, teeing up a much-needed boost for the region’s struggling stock market rally.

Lackluster corporate results, the risk of punitive trade tariffs and signs of escalation in the Russia-Ukraine conflict are all weighing on European shares. The Euro Stoxx 50 is down about 1.5% this month, approaching levels where technical supports could help stop the pullback, while the broader Stoxx 600 has dropped 0.5%. Against this backdrop, share repurchases could prove a lifeline.