The most recent terrorist attacks in Paris have not had a major effect on European stock markets this week. The MSCI Europe Index had retreated a bit even before the assault in France. But that retreat has not fully offset the more than 7% rise in European stocks in October.

True, the economy remains sluggish, but that will likely encourage more easing by the European Central Bank. Given that the potential ECB easing may be combined with Federal Reserve tightening, European stocks could do well in the months ahead.

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