Market update: The Dow and the S&P 500 hit new record closing highs – 05.08.2013

Source: Henderson Global Investors

US equities rose on Friday with both the Dow Jones and the S&P 500 gaining 0.2%. Both the Dow and the S&P 500 hit new record closing highs after Friday’s key jobs report showed non-farm payrolls rose by 162,000 in July, below expectations, and the unemployment rate fell to 7.4 per cent, its lowest reading since December 2008. Shares in Dell rose 5.6% after news of a compromise buyout deal, which added less than 2% to the purchase price, was announced on Friday.

European equities opened higher this morning with the FTSE 100 up 0.4% and the FTSE Eurofirst 300 0.3% higher. Shares in Lloyds Banking Group gained 2.9% to 75.8p on hopes that the bank will restore its dividend. The part-nationalised lender could seek to pay out as much as 70% of its earnings in dividends within three years. Elsewhere, shares in Smiths Group lost 1.3% as investors continued to react to news that talks about the potential sale of its medical products business ended without agreement.