
European stocks are experiencing significant fluctuations in value when companies release earnings reports, a trend attributed to the influence of hedge funds in the $15 trillion market. This shift towards earnings-driven trading is highlighted by the outsized gains and losses seen in shares, reflecting the growing impact of fast money over traditional valuation metrics. The hedge fund industry in Europe is gaining momentum, with Morgan Stanley witnessing a surge in hedge fund launches compared to the past decade.



NEW: Europe’s hedge fund industry is taking off after lost decade Morgan Stanley is working with more hedge fund launches in Europe this year than it has in the last 10 years "It now feels like it is through an inflection point" short 🧵 https://t.co/RVTyhoQ0MJ https://t.co/GZHCOt9wCd
No one wants a long term relationship with big European stocks anymore. Hedge funds have flings with them on earnings days. Listings are volatile and unrewarding - a stock market version of being on Tinder. https://t.co/IFuDAGbUGZ https://t.co/rd2N2Bj748
European companies are seeing outsized gains and losses in their shares when they report earnings, a @Reuters analysis shows, a trend that has more to do with the growing sway of fast money in the $15 trillion market than with business prospects https://t.co/qOFK3Z4mb4