Europe mixed as markets react to China move

European equities are expected to open mixed on Monday as investors react to an interest rate cut in China over the weekend.

The FTSE is seen opening down 12 points at 6,934, the German DAX up 11 points at 11,412 and the French CAC down 11 points at 4,940.

Markets will likely react to an interest rate cut in China on Saturday. The People's Bank of China (PBOC) cut the benchmark interest rate by 25 basis points to 5.35 percent in a bid to stimulate the flagging economy.

The move comes amid better purchasing manager's index (PMI) from China. HSBC's final reading of China's manufacturing sector in February came in at 50.7 on Monday, higher than the flash reading of 50.1.

The official PMI reading for February announced over the weekend showed a second straight month of contraction due to unsteady exports and slowing investment, however, prompting speculation that more action might be needed from the PBOC.

Meanwhile, investors will also react to data on Friday showing that economic growth in the U.S. slowed more sharply than initially thought in the fourth quarter.

In other news, thousands of Russians marched through central Moscow on Sunday "in memory of Kremlin critic Boris Nemtsovwho was murdered on Friday. The protestors carried banners declaring "I am not afraid" and chanting "Russia without Putin." Controversially, Russian President Vladimir Putin has taken control of the investigation into the murder.

Investors in Europe will be keeping a close eye on final manufacturing PMI numbers for February for Spain, Germany, Italy, France and the euro area. Unemployment data is also due from Europe as well as a preliminary reading of Russian fourth quarter GDP. In a quiet day for earnings, Luxottica release full-year earnings Monday.