LIVE MARKETS-Record high buybacks help underpin European shares

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RECORD HIGH BUYBACKS HELPING UNDERPIN EUROPE

Buyback executions by European firms were their strongest on record at 16 billion euros in February, according to strategists at Barclays, cushioning shares in the face of heightened uncertainty and geopolitical tensions.

"Companies with buybacks have been outperforming the broader market, notably in Energy, Staples and Financials," write Barclays.

"The blackout period now (being) behind us should provide additional bandwidth for share repurchases, which should further support the market," they add.

Companies often impose a 'blackout period', where they suspend share repurchases leading up to and slightly after earnings announcements, but the appetite for buybacks is showing little sign of slowing down.

Barclays notes that in February, STOXX 600 .STOXX companies announced 43 billion euros in buyback programmes, consistent with previous years.

"As the Q4 earnings season wraps up, companies are showing strong enthusiasm for new share repurchase programmes," Barclays adds, with financials leading the way with 21 billion euros in announcements over the last 3 months.

(Samuel Indyk)

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