Hedge funds drop European stocks for U.S. and Japan, analysts say

Hedge funds ditched European equities last week for stocks in the United States and Japan, client notes from JP Morgan, Morgan Stanley and Goldman Sachs show, as strong economic data lifted equity markets in both countries. Commodity Trading Advisors, hedge funds that use algorithms to trade market trends, rotated out of European and Hong Kong stocks and have moved into the United States and Japan, a JP Morgan note seen on Monday showed. These funds have taken the largest bullish position in Japanese stocks seen in about two years, while long, or bullish bets, on UK stocks were "trimmed the…