By Mike Bird

European stocks stemmed their gains on Friday, following the rally prompted by Tuesday's U.S. presidential election, as bond yields continued to climb.

The Stoxx Europe 600 index was down 0.5% in midmorning trading in Europe.

Utilities and auto stocks bucked the trend, rising by around 1%. Bank stocks, which rallied on Thursday, were more muted on Friday.

In the U.S., futures pointed to a dip in the S&P 500, down 0.6%. Moves in futures don't always reflect changes after the opening bell.

The debt of advanced economies continued to be sold off at the market open. U.K. 10-year gilt yields reached 1.4% in early trading, their highest since before the Brexit vote inJune. The yields later dipped slightly, falling to 1.38%.

Germany's 10-year bund yields climbed to 0.3% in early trading, their highest since March. U.S. bond markets are closed for Veteran's Day on Friday.

Analysts identified a common cause in the surge in stocks and the selloff in bonds since election day. Expectations for President-elect Donald Trump's plans for tax cuts and infrastructure spending, potentially funded by higher deficits, have driven asset prices.

"The market has to take into account how positive the policies from Trump may be. Inflation and growth expectations may firm up much higher than they have been," said Peter Chatwell, head of European rates strategy at Japanese bank Mizuho International.

"These are the sort of levels I was expecting gilts and bunds to reach by the end of 2017, That's the reflation trade," Mr. Chatwell added.

Stocks in Asia were mixed on Friday. Japan's Nikkei 225 closed0.2% higher, but emerging-market equities in Asia were sold off.

The Philippines PSEi closed down 2.9%, and Indonesia's Jakarta Composite Index dropped 4.0%, and South Korea's KOSPI index ended the day down by 0.9%.

Copper prices continued to surge, rising by more than 6% to $5,967 per tonne. The metal is on its longest sinning streak for at least 27 years, and the price is now at its highest level in a year.

Before the U.S. election, many analysts speculated that the Federal Reserve might be less likely to raise interest rates in December in the event of a victory for Mr. Trump. As markets have rallied and priced in higher inflation, that view has shifted.

"A lot of people, myself included, would have taken the view that if equity markets sold off, it would've made a December Fed hike less likely," said Mike Bell, global market strategist at J.P. Morgan Asset Management.

"The fact that markets have moved as they have clearly removes that argument," he added.

In currency markets, the pound rose against the dollar, up by 0.9% to $1.265. That is the highest level since sterling's flash crash in early October, when the currency plunged by more than 6% in a matter of minutes.

The Dow surged to a fresh record high Thursday, up 2.7% from its election day close on Tuesday, bucking widespread expectations for a selloff after Mr. Trump's presidential victory.

Write to Mike Bird at Mike.Bird@wsj.com

(END) Dow Jones Newswires

November 11, 2016 06:10 ET (11:10 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.