By Mike Bird

The global stock rally that followed Donald Trump's U.S. presidential election victory stalled Friday, while bond yields held at higher levels.

The Stoxx Europe 600 index was flat in early European afternoon trading. Utilities and auto stocks bucked the trend, rising more than 1%. Banking stocks, which rallied on Thursday, were more muted.

In the U.S., futures pointed to a 0.4% fall in the S&P 500. Stocks had rallied Thursday, with the Dow reaching a fresh record high, bucking widespread expectations for a selloff after Mr. Trump's presidential victory. Moves in futures don't always reflect changes after the opening bell.

The debt of advanced economies continued tobe 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 in June. The yields later dipped slightly, falling to 1.35%.

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

Analysts have attributed the surge in stocks and selloff in bonds to a warm reception from investors to Mr. Trump's plans for tax cuts and infrastructure spending, potentially funded by higher deficits.

"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."

Stocks in Asia were mixed Friday. Japan's Nikkei 225 closed 0.2% higher, but emerging-market equities in Asia were sold off.

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

Copper prices continued to surge, rising more than 5.2% to $5,906 a metric ton. The metal is on its longest winning streak for at least 28 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."

In currency markets, the pound rose 0.8% against the dollar to $1.264--its highest level since the flash crash in October, when it plunged more than 6% in a matter of minutes.

Write to Mike Bird at

(END) Dow Jones Newswires

November 11, 2016 08:14 ET (13:14 GMT)

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