(Adding non-manufacturing ISM number, ADP data; inserting analyst comment)
--Factory goods orders fall in June by 0.8% from previous month
--Gauge of capital spending increases modestly
--Report underscores weakness of overall economy
By Jeff Bater and Tom Barkley
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- Orders for U.S. factory goods fell in June for the second time in three months, a sign the anemic economy is causing strains among manufacturers.
Orders for manufactured goods decreased by 0.8% from the prior month to $ 440.69 billion, the Commerce Department said Wednesday.
Aside from the drop in factory orders, an important reading on the nation's service sector fell to its lowest since February 2010. The Institute for Supply Management said Wednesday its non-manufacturing purchasing managers' index slipped to 52.7 in July from 53.3 in June.
Payroll giant Automatic Data Processing Inc. and consultancy Macroeconomic Advisers said private-sector payrolls increased in July, but their somewhat upbeat report didn't show a jobs gain considered robust or particularly healthy.
Despite a deal in Washington to raise the government debt ceiling and avoid default, stock market prices Wednesday were down, reflecting deepening worry about the overall economy.
"Good economic reports have been few and far between and the slowdown is real, " said Joel Naroff, who runs Naroff Economic Advisors in Holland, Pa. "I don't expect a double-dip, but this economy doesn't need any more speed bumps put in the road."
Overall economic growth was soft in the first half of 2011, as consumers pulled back sharply on their spending. Unemployment in the U.S. is high, and elevated gasoline prices mean consumers have to fork over more of their incomes, which aren't rising much.
The decline in factory orders during June follows a 0.6% increase in May and a drop of 0.9% during April. Economists surveyed by Dow Jones Newswires had forecast a 1.0% drop in overall factory orders in June.
Capital investment on equipment by U.S. businesses rose mildly. A barometer of business spending within the data, non-defense capital goods orders excluding aircraft, increased by 0.4%.
Manufacturing has been a strong part of the economy as it recovers from the recession. But factories have been feeling stress from a slowing economy.
Last week, the government reported orders for long-lasting goods tumbled a second time in three months during June. On Wednesday, the Commerce Department, in its factory report, revised the durable-goods orders drop, to 1.9% from the previously estimated 2.1%.
A report this week suggested manufacturing slowed sharply in July. The ISM's manufacturing index fell to 50.9 from 55.3 in June. The new reading wasn't much above 50, the minimum level that indicates expanding activity in the goods- making sector. Readings below 50 suggest contraction.
-By Jeff Bater, Dow Jones Newswires; 202-862-9249, jeff.bater@dowjones.com
Showing posts with label World. Show all posts
Showing posts with label World. Show all posts
Wednesday, 3 August 2011
2nd UPDATE: Kinder Morgan Energy Partners Plans 2-Part $750 Million Offering
Kinder Morgan Energy Partners selling $750 million offering in 10.5- and 30- year notes
--Proceeds will be used to repay short-term debt and for general corporate purposes
--The company last issued debt in February with a $1.1 billion deal
(Updates with launch levels in second paragraph and final risk premiums in third paragraph.)
By Nicole Hong
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Kinder Morgan Energy Partners LP (KMP), a subsidiary of energy company Kinder Morgan Inc. (KMI), is planning to issue a two-part $750 million bond offering Wednesday in the U.S. market, according to a person familiar with the deal.
The deal comprises a $375 million 10.5-year tranche and a $375 million 30-year tranche.
The 10.5-year piece launched at the narrow end of price guidance, suggesting good demand, with a risk premium of 157 basis points over Treasurys. The 30-year piece launched with a risk premium of 180 basis points over Treasurys, directly in line with price guidance.
Pricing on the senior unsecured notes is expected later Wednesday.
Leading the debt sale are Bank of America Merrill Lynch, Barclays Capital and Citigroup Inc. (C).
Proceeds will be used to repay short-term debt and for general corporate purposes.
The deal has been rated Baa2 by Moody's Investors Service and BBB by Standard & Poor's.
Kinder Morgan Energy Partners last issued debt in February with a $1.1 billion deal, according to data provider Dealogic.
Headquartered in Houston, Kinder Morgan Energy Partners is a pipeline transportation and energy-storage company in North America. Two weeks ago, it reported quarterly earnings dropped 36% to $230.5 million from $361.2 million a year earlier.
Kinder Morgan declined to comment on the deal.
-By Nicole Hong, Dow Jones Newswires; 212-416-3760; nicole.hong@dowjones.com
--Proceeds will be used to repay short-term debt and for general corporate purposes
--The company last issued debt in February with a $1.1 billion deal
(Updates with launch levels in second paragraph and final risk premiums in third paragraph.)
By Nicole Hong
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Kinder Morgan Energy Partners LP (KMP), a subsidiary of energy company Kinder Morgan Inc. (KMI), is planning to issue a two-part $750 million bond offering Wednesday in the U.S. market, according to a person familiar with the deal.
The deal comprises a $375 million 10.5-year tranche and a $375 million 30-year tranche.
The 10.5-year piece launched at the narrow end of price guidance, suggesting good demand, with a risk premium of 157 basis points over Treasurys. The 30-year piece launched with a risk premium of 180 basis points over Treasurys, directly in line with price guidance.
Pricing on the senior unsecured notes is expected later Wednesday.
Leading the debt sale are Bank of America Merrill Lynch, Barclays Capital and Citigroup Inc. (C).
Proceeds will be used to repay short-term debt and for general corporate purposes.
The deal has been rated Baa2 by Moody's Investors Service and BBB by Standard & Poor's.
Kinder Morgan Energy Partners last issued debt in February with a $1.1 billion deal, according to data provider Dealogic.
Headquartered in Houston, Kinder Morgan Energy Partners is a pipeline transportation and energy-storage company in North America. Two weeks ago, it reported quarterly earnings dropped 36% to $230.5 million from $361.2 million a year earlier.
Kinder Morgan declined to comment on the deal.
-By Nicole Hong, Dow Jones Newswires; 212-416-3760; nicole.hong@dowjones.com
3rd UPDATE: Coca-Cola To Offer $2 Billion In Notes To Fund Exchange Offer
Adds launch levels in fifth paragraph.)
DOW JONES NEWSWIRES
Coca-Cola Co. (KO) said it plans to offer $2 billion of senior notes as the beverage company aims to raise proceeds to fund an exchange offer of several series of notes.
The company intends to sell $1 billion of notes due in 2016 and another $1 billion to mature in 2021, saying the proceeds would be used to fund an exchange offer of up to $2 billion of notes issued by a subsidiary, Coca-Cola Refreshments USA Inc.
The maturity dates of the exchange offer vary from as early as 2012 to as late as 2036. The early participation payment per $1,000 principal amount of old notes accepted for exchange was generally set at $40, although it was $10 for two series of notes due in 2012.
The exchange offer expires at midnight EDT on Aug. 30, unless otherwise extended. A number of companies are using the record-low interest-rate environment to cut borrowing costs, although Coca-Cola didn't detail why it was launching the offer.
Both tranches launched at the narrow end of price guidance, suggesting good demand. The five-year notes launched with a risk premium of 57 basis points over Treasurys and the 10-year notes with a risk premium of 72 basis points over Treasurys.
Pricing is expected later Wednesday.
Leading the debt sale are BNP Paribas SA (BNPQY, BNP.FR), Citigroup Inc. (C) and Goldman Sachs Group Inc. (GS).
This is the first time Coca-Cola has issued debt this year, according to data provider Dealogic. The company's last debt offering was for $4.5 billion in November 2010.
The deal has been rated Aa3 by Moody's Investors Service and A+ by Standard & Poor's.
Last month, Coca-Cola reported its second-quarter earnings rose 18%, boosted by the company's recent bottler acquisition and strong volume growth overseas. But results were muted closer to home due to the struggling economy.
Shares were up 1.4% to $68 in recent trading.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
--Nicole Hong contributed to this article.
DOW JONES NEWSWIRES
Coca-Cola Co. (KO) said it plans to offer $2 billion of senior notes as the beverage company aims to raise proceeds to fund an exchange offer of several series of notes.
The company intends to sell $1 billion of notes due in 2016 and another $1 billion to mature in 2021, saying the proceeds would be used to fund an exchange offer of up to $2 billion of notes issued by a subsidiary, Coca-Cola Refreshments USA Inc.
The maturity dates of the exchange offer vary from as early as 2012 to as late as 2036. The early participation payment per $1,000 principal amount of old notes accepted for exchange was generally set at $40, although it was $10 for two series of notes due in 2012.
The exchange offer expires at midnight EDT on Aug. 30, unless otherwise extended. A number of companies are using the record-low interest-rate environment to cut borrowing costs, although Coca-Cola didn't detail why it was launching the offer.
Both tranches launched at the narrow end of price guidance, suggesting good demand. The five-year notes launched with a risk premium of 57 basis points over Treasurys and the 10-year notes with a risk premium of 72 basis points over Treasurys.
Pricing is expected later Wednesday.
Leading the debt sale are BNP Paribas SA (BNPQY, BNP.FR), Citigroup Inc. (C) and Goldman Sachs Group Inc. (GS).
This is the first time Coca-Cola has issued debt this year, according to data provider Dealogic. The company's last debt offering was for $4.5 billion in November 2010.
The deal has been rated Aa3 by Moody's Investors Service and A+ by Standard & Poor's.
Last month, Coca-Cola reported its second-quarter earnings rose 18%, boosted by the company's recent bottler acquisition and strong volume growth overseas. But results were muted closer to home due to the struggling economy.
Shares were up 1.4% to $68 in recent trading.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
--Nicole Hong contributed to this article.
FDA Says High Doses Of Antifungal Drug Fluconazole Might Cause Birth Defects
By Jennifer Corbett Dooren, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The U.S. Food and Drug Administration said Wednesday long-term treatment with high doses of the antifungal drug fluconazole in the first trimester of pregnancy might cause birth defects.
Fluconazole is marketed by several generic drug companies and under the brand name Diflucan by Pfizer Inc. (PFE). The product is used to treat certain kinds of yeast infections and meningitis caused by a type of fungus. Fluconazole is also used to prevent yeast infections in patients being treated with chemotherapy or radiation before a bone-marrow transplant.
The FDA said that the typical one-time, 150 milligram dose used to treat vaginal yeast infections is not associated with a risk of birth defects.
However, there have been at least five reported cases of birth defects, that include facial abnormalities, seen in infants whose mothers were treated with 400-to-800 milligrams of fluconazole per day during the first trimester of pregnancy.
The agency changed the pregnancy category for most uses of fluconazole to " pregnancy category D" which means there's evidence of fetal risk based on human data, but the potential benefits from use of the drug in pregnant women with serious or life-threatening conditions may be acceptable, according to FDA.
A pregnancy category appears on drug labels written for health-care professionals. The agency said the category wasn't being changed for the 150 milligram dose used to treat vaginal yeast infections.
-By Jennifer Corbett Dooren, Dow Jones Newswires; 202-862-9294; jennifer.corbett@dowjones.com
WASHINGTON -(Dow Jones)- The U.S. Food and Drug Administration said Wednesday long-term treatment with high doses of the antifungal drug fluconazole in the first trimester of pregnancy might cause birth defects.
Fluconazole is marketed by several generic drug companies and under the brand name Diflucan by Pfizer Inc. (PFE). The product is used to treat certain kinds of yeast infections and meningitis caused by a type of fungus. Fluconazole is also used to prevent yeast infections in patients being treated with chemotherapy or radiation before a bone-marrow transplant.
The FDA said that the typical one-time, 150 milligram dose used to treat vaginal yeast infections is not associated with a risk of birth defects.
However, there have been at least five reported cases of birth defects, that include facial abnormalities, seen in infants whose mothers were treated with 400-to-800 milligrams of fluconazole per day during the first trimester of pregnancy.
The agency changed the pregnancy category for most uses of fluconazole to " pregnancy category D" which means there's evidence of fetal risk based on human data, but the potential benefits from use of the drug in pregnant women with serious or life-threatening conditions may be acceptable, according to FDA.
A pregnancy category appears on drug labels written for health-care professionals. The agency said the category wasn't being changed for the 150 milligram dose used to treat vaginal yeast infections.
-By Jennifer Corbett Dooren, Dow Jones Newswires; 202-862-9294; jennifer.corbett@dowjones.com
2nd UPDATE: KKR 2Q Core Earnings Down 25% As Gains Moderate
--Shares fall as earnings miss analysts' expectations
--Its earnings miss highlights volatile marked-to-market values
--Choppy market may continue to hurt earnings
--Market volatility will accelerate investors' shift to alternative investments
(Adds share price in the first two paragraphs, details to financials in the fifth and sixth paragraph, comments from earnings call from ninth paragraph onwards.)
By Amy Or
Of DOW JONES NEWSWIRES
KKR & Co.'s (KKR) share price dropped nearly 6% as its second-quarter core earnings fell 25% and missed analysts' expectations.
Its shares were down 5.9% at $13.30 in recent trading.
Economic net income--a metric analysts monitor that reflects private-equity firms' underlying operations and excludes special charges such as those linked to KKR's initial public offering--fell to 36 cents a share from 48 cents. Analysts polled by Thomson Reuters had expected earnings of 40 cents a share on revenue of $195 million.
Profits calculated on generally accepted accounted principles rose 32% to $ 39.6 million on higher assets under management and a 35% rise in revenue to $ 117.6 million.
KKR's earnings miss highlights volatilities in reporting marked-to-market values of portfolios at a time when markets have steadied following the huge plunge and rebound of the financial crisis.
Gains from KKR's investments in underlying funds and co-investments fell to $ 150 million from a $255 million a year ago on "less significant appreciation" in assets than in the year-earlier period, thus hurting economic net income.
Its private-equity portfolio appreciated by 3.8% in the second quarter and 10.1% in the first half, coming off the extremely high returns of more than 30% last year.
"Our private equity investments outperformed the S&P 500 by nearly 400 basis points for the quarter," said Henry R. Kravis and George R. Roberts, co- founders, co-chairmen, and co-chief executives in a statement.
But recent market volatilities may spell further woes in upcoming earnings, as share prices of publicly listed portfolio companies take a hit.
During a conference call to discuss the results, executives said hospital operator HCA Holdings Inc.'s (HCA) 30% plunge in share price since the end of the second quarter, if booked on the balance sheet right now, would be reflected as a loss of around $150 million in fair value and $69 million in performance fee or "carry."
"HCA is still well over three times its cost," said Craig Larson, KKR's head of investor relations.
But overall, KKR said it expects to benefit from choppy market conditions as institutional investors switch to alternative investments from traditional means of trading.
"Maybe it's counterintuitive. But when everybody's scared, we get pretty excited," said Scott Nuttall, KKR's head of global capital and asset management. "This environment is creating some pretty interesting supply-demand imbalances and we're stepping into that imbalance and making some pretty investments."
He highlighted opportunities in European banks' sales of assets and lending to middle-market companies, where banks and traditional sources of financing are " gone or impaired."
The company, which switched the listing of its shares to the New York Stock Exchange in July 2010 from Euronext Amsterdam, had $61.9 billion in assets under management as of June 30, up 14% from a year ago, on continued investment appreciation and new capital raised.
Since March 31, KKR disclosed 12 new investments whose enterprise value totaled $11 billion.
It also reported seven sales of companies, expected to realize more than $2 billion, or 2.4 times its initial investments. Executives said an announced sale of Hilcorp Resources Holdings LP is expected to generate a cash distribution of 6 cents a share in the fourth quarter.
KKR, which still has $13.7 billion in uncalled commitments or "dry powder" for future investments, said its new long-short equity hedge fund started to accept investors' capital this month. The team is run by former Goldman Sachs Group Inc. (GS) proprietary traders.
-By Amy Or, Dow Jones Newswires; 212-416-3142; amy.or@dowjones.com
--Nathalie Tadena contributed to this article.
--Its earnings miss highlights volatile marked-to-market values
--Choppy market may continue to hurt earnings
--Market volatility will accelerate investors' shift to alternative investments
(Adds share price in the first two paragraphs, details to financials in the fifth and sixth paragraph, comments from earnings call from ninth paragraph onwards.)
By Amy Or
Of DOW JONES NEWSWIRES
KKR & Co.'s (KKR) share price dropped nearly 6% as its second-quarter core earnings fell 25% and missed analysts' expectations.
Its shares were down 5.9% at $13.30 in recent trading.
Economic net income--a metric analysts monitor that reflects private-equity firms' underlying operations and excludes special charges such as those linked to KKR's initial public offering--fell to 36 cents a share from 48 cents. Analysts polled by Thomson Reuters had expected earnings of 40 cents a share on revenue of $195 million.
Profits calculated on generally accepted accounted principles rose 32% to $ 39.6 million on higher assets under management and a 35% rise in revenue to $ 117.6 million.
KKR's earnings miss highlights volatilities in reporting marked-to-market values of portfolios at a time when markets have steadied following the huge plunge and rebound of the financial crisis.
Gains from KKR's investments in underlying funds and co-investments fell to $ 150 million from a $255 million a year ago on "less significant appreciation" in assets than in the year-earlier period, thus hurting economic net income.
Its private-equity portfolio appreciated by 3.8% in the second quarter and 10.1% in the first half, coming off the extremely high returns of more than 30% last year.
"Our private equity investments outperformed the S&P 500 by nearly 400 basis points for the quarter," said Henry R. Kravis and George R. Roberts, co- founders, co-chairmen, and co-chief executives in a statement.
But recent market volatilities may spell further woes in upcoming earnings, as share prices of publicly listed portfolio companies take a hit.
During a conference call to discuss the results, executives said hospital operator HCA Holdings Inc.'s (HCA) 30% plunge in share price since the end of the second quarter, if booked on the balance sheet right now, would be reflected as a loss of around $150 million in fair value and $69 million in performance fee or "carry."
"HCA is still well over three times its cost," said Craig Larson, KKR's head of investor relations.
But overall, KKR said it expects to benefit from choppy market conditions as institutional investors switch to alternative investments from traditional means of trading.
"Maybe it's counterintuitive. But when everybody's scared, we get pretty excited," said Scott Nuttall, KKR's head of global capital and asset management. "This environment is creating some pretty interesting supply-demand imbalances and we're stepping into that imbalance and making some pretty investments."
He highlighted opportunities in European banks' sales of assets and lending to middle-market companies, where banks and traditional sources of financing are " gone or impaired."
The company, which switched the listing of its shares to the New York Stock Exchange in July 2010 from Euronext Amsterdam, had $61.9 billion in assets under management as of June 30, up 14% from a year ago, on continued investment appreciation and new capital raised.
Since March 31, KKR disclosed 12 new investments whose enterprise value totaled $11 billion.
It also reported seven sales of companies, expected to realize more than $2 billion, or 2.4 times its initial investments. Executives said an announced sale of Hilcorp Resources Holdings LP is expected to generate a cash distribution of 6 cents a share in the fourth quarter.
KKR, which still has $13.7 billion in uncalled commitments or "dry powder" for future investments, said its new long-short equity hedge fund started to accept investors' capital this month. The team is run by former Goldman Sachs Group Inc. (GS) proprietary traders.
-By Amy Or, Dow Jones Newswires; 212-416-3142; amy.or@dowjones.com
--Nathalie Tadena contributed to this article.
Tuesday, 2 August 2011
GLOBAL MARKETS-U.S. deal offers respite, but downgrade looms
Riskier assets rally after tentative U.S. debt deal
* Wall Street set for gains
* Gold weaker but Swiss franc gains vs dollar
* U.S. credit downgrade expected
* PMIs show stagnant growth
By Jeremy Gaunt, European Investment Correspondent
LONDON, Aug 1 (Reuters) - Investors boosted stocks and sold some safe-haven assets on Monday, betting that a last-minute deal in Washington meant the U.S. economy would avoid default.
Wall Street looked set for significant gains but caution was the watchword, with the dollar falling to a new record low against the Swiss franc.
There remained a widespread assumption that ratings agencies could downgrade U.S. Treasuries from their vaunted triple-A status, a move that would impact the valuation of numerous other assets.
Investors were also digesting data pointing to stagnant growth in the global economy, with Chinese factory activity slowing and euro zone manufacturing falling.
After a tense weekend spent in search of a compromise to allow the U.S. borrowing limit to be lifted, U.S. President Barack Obama said leaders from both parties reached a deal to cut the budget deficit by $1 trillion over 10 years, with additional savings of $1.4 trillion possible.
The plan must be passed by both houses of Congress and will still face some opposition. But it is expected to allow the debt ceiling to be raised, avoiding the prospect of Washington not being able to pay its bills and defaulting.
World stocks as measured by MSCI climbed 0.7 percent with emerging market shares up 1.3 percent.
There were large gains in Japan, where the Nikkei rose 1.3 percent. In Europe, the FTSEurofirst 300 rose 0.5 percent with banking shares enjoying a big boost.
But scepticism persisted about how long the rise in risk sentiment might last, given the likely U.S. downgrade that some believe could come this week.
"It is a relief rally on the back of the parties coming together, but it could only last for a couple of days as the United States could now face a ratings downgrade," Manoj Ladwa, senior trader at ETX Capital, said.
"That would impact every part of the United States."
It would also raise issues for other assets. Some large pension funds, for example, will only hold triple-A debt, meaning they may have to sell Treasuries and buy elsewhere, crowding trades into German Bunds, for example.
The relative valuations of a number of assets, meanwhile, are based on their divergence from supposedly risk-free Treasuries.
UNWINDING
An unwinding of investor positions taken to protect against U.S. default was short-lived.
Gold fell more than 1 percent before recovering to stand just half a percent down. It was at $1,618 an ounce after hitting all-time nominal highs last week.
Early dollar gains against the Swiss franc reversed, leaving the U.S. currency at a new record low. The franc has seen intense interest from investors as the twin euro zone and U.S. debt crises have stirred markets this year.
"The problems are not fully solved so I think we will see a muted reaction," said Richard Falkenhall, currency strategist at SEB in Stockholm.
"You have the risk of ratings agency downgrades, and no further fiscal stimulus in this deal," he said.
On bond markets, yields on U.S. Treasuries and core euro zone debt rose, reflecting some selling to release money parked in fixed income in the runup to the U.S. deal.
(Additional reporting by Naomi Tajitsu and Joanne Frearson; Editing by John Stonestreet/Catherine Evans)
* Wall Street set for gains
* Gold weaker but Swiss franc gains vs dollar
* U.S. credit downgrade expected
* PMIs show stagnant growth
By Jeremy Gaunt, European Investment Correspondent
LONDON, Aug 1 (Reuters) - Investors boosted stocks and sold some safe-haven assets on Monday, betting that a last-minute deal in Washington meant the U.S. economy would avoid default.
Wall Street looked set for significant gains but caution was the watchword, with the dollar falling to a new record low against the Swiss franc.
There remained a widespread assumption that ratings agencies could downgrade U.S. Treasuries from their vaunted triple-A status, a move that would impact the valuation of numerous other assets.
Investors were also digesting data pointing to stagnant growth in the global economy, with Chinese factory activity slowing and euro zone manufacturing falling.
After a tense weekend spent in search of a compromise to allow the U.S. borrowing limit to be lifted, U.S. President Barack Obama said leaders from both parties reached a deal to cut the budget deficit by $1 trillion over 10 years, with additional savings of $1.4 trillion possible.
The plan must be passed by both houses of Congress and will still face some opposition. But it is expected to allow the debt ceiling to be raised, avoiding the prospect of Washington not being able to pay its bills and defaulting.
World stocks as measured by MSCI climbed 0.7 percent with emerging market shares up 1.3 percent.
There were large gains in Japan, where the Nikkei rose 1.3 percent. In Europe, the FTSEurofirst 300 rose 0.5 percent with banking shares enjoying a big boost.
But scepticism persisted about how long the rise in risk sentiment might last, given the likely U.S. downgrade that some believe could come this week.
"It is a relief rally on the back of the parties coming together, but it could only last for a couple of days as the United States could now face a ratings downgrade," Manoj Ladwa, senior trader at ETX Capital, said.
"That would impact every part of the United States."
It would also raise issues for other assets. Some large pension funds, for example, will only hold triple-A debt, meaning they may have to sell Treasuries and buy elsewhere, crowding trades into German Bunds, for example.
The relative valuations of a number of assets, meanwhile, are based on their divergence from supposedly risk-free Treasuries.
UNWINDING
An unwinding of investor positions taken to protect against U.S. default was short-lived.
Gold fell more than 1 percent before recovering to stand just half a percent down. It was at $1,618 an ounce after hitting all-time nominal highs last week.
Early dollar gains against the Swiss franc reversed, leaving the U.S. currency at a new record low. The franc has seen intense interest from investors as the twin euro zone and U.S. debt crises have stirred markets this year.
"The problems are not fully solved so I think we will see a muted reaction," said Richard Falkenhall, currency strategist at SEB in Stockholm.
"You have the risk of ratings agency downgrades, and no further fiscal stimulus in this deal," he said.
On bond markets, yields on U.S. Treasuries and core euro zone debt rose, reflecting some selling to release money parked in fixed income in the runup to the U.S. deal.
(Additional reporting by Naomi Tajitsu and Joanne Frearson; Editing by John Stonestreet/Catherine Evans)
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