Leaders try to quell credit jitters; Franklin adds 3%
By John Spence, MarketWatch
BOSTON (MarketWatch) — The financial sector followed global stocks higher Tuesday as talk of intervention by the European Central Bank in Europe’s troubled bond markets assuaged fears over sovereign debt, at least for the time being.
The Financial Select Sector SPDR Fund (XLF 16.23, +0.06, +0.34%) was up fractionally, bringing its year-to-date gain to about 2% with bank stocks off to a solid start in 2011.
Portugal was the focus of the European debt crisis Tuesday before a key bond auction. Reports of ECB support in bond markets and news that Japan would buy the region’s debt helped to stabilize the market. See full story on Portugal’s debt situation.
Among individual financial stocks, Franklin Resources Inc. (BEN 116.24, +3.31, +2.93%) gained 3% after the firm said assets under management jumped to $670.7 billion in December from $642.3 billion the previous month.
“This is the highest quarter-end AUM level in company history,” said Ticonderoga Securities analyst Douglas Sipkin, who boosted his 2011 profit estimate for Franklin.
