Barclays has identified a handful of European stocks poised to benefit from China's anticipated economic stimulus measures. Investors have been closely watching for signs of government intervention as the world's second-largest economy grapples with slowing growth and weak domestic demand. Earlier this week, the People's Bank of China surprised markets by announcing plans to cut several rates , including that of existing mortgages. Mainland Chinese stocks jumped on the news.
-headquartered insurer Prudential , cosmetics giant L'Oreal , carmakers BMW and Mercedes , and miner Rio Tinto are among the top European stocks that could benefit from China's stimulus efforts. All five stocks are also traded in the U.S. Those companies were picked based on their high exposure to the Chinese market, low volatility scores, significant upside potential, and lackluster performance year-to-date.