While the state of the Covid-19 pandemic in the US and China has gotten much of the focus, Europe has quietly been making progress. Policymakers have been united and have worked swiftly to cushion the fallout—and that means European stocks could be ready for a comeback.

There’s no doubt that they have been unloved for a while. Over the past six months, the Stoxx Europe 600 index has slid nearly 12%, compared with a 2.6% decline in the S&P 500. And it has lagged badly over the past three years, rising just 4.8%, compared with 36% for the US index.