Europe open: Akzo Nobel rockets, airlines in EU crosshairs

European equities were lower at the start of trading as investors steered a wide berth ahead of the European Central Bank´s policy meeting.

The ECB's policy announcement was due at 1245 GMT followed by the start of Draghi's press conference at 1330 GMT.

At 0831 GMT the benchmark Stoxx 600 was lower by 0.24% to 371.18, as Germany's Dax lost 0.25% to 11,937.13 and Milan's FTSE Mibtel retreated 0.31% to 19,418.85.

Euro/dollar was up by 0.13% at 1.0555 and gold futures for next month delivery down 0.51% to $1,203.20/oz..

The energy and utility sectors fell on a sharp fall in crude oil futures and rising bond yields.

Yields on Germany's benchmark 10-year bunds were two basis points higher to 0.39%.

ECB and Draghi ahead

The ECB was not expected to make significant changes to any of its policy settings at Thursday´s meeting, but over recent days and weeks some economists had begun to shift their own expectations in light of the more buoyant economic mood in the US.

ECB chief Mario Draghi's well-known propensity to keep markets on their toes was perhaps also a good reason for some to play it safe.

Accendo Markets' head of research Mike Van Dulken said, Draghi was likely to be "standing pat yet again" with observers waiting for the ECB's news conference for any change to the bank’s outlook, "especially further QE tapering, in light of rising inflationary pressures (headline vs core), especially in Germany, although it could be argued that oil prices -5% on year to date could mean this dissipates soon".

Economists at UniCredit Research offered a similar slant on the week's main risk event, saying they did not anticipate any new policy announcements, although Draghi would likely sound less 'dovish' with the Governing Council expected to drop its easing bias on rates.

Nonetheless, it would confirm its stance on asset purchases, including the commitment to buy more if the outlook worsens or financial conditions tighten excessively.

The French central bank's business confidence index rose from 102.0 for January to 104.0 in February (consensus: 102.0).

Non-farm payrolls in the euro area´s second largest economy grew 0.4% quarter-on-quarter in the final three months of 2016, according to INSEE.

Dutch consumer prices advanced at a 0.9%month-on-month (1.7% year-on-year) clip in February, as expected.

Akzo builds it defences

Akzo Nobel was the standout gainer in early trades, with shares rocketing 14% after rejecting a takeover approach from US rival PPG.

Chemicals gaint Akzo Nobel spurned an unsolicited takeover approach from US peer PPG Industries valued at €20.9bn, with management reacting with an announcement they sell the speciality chemicals unit in order to lift the share price.

In coming weeks, Air France-KLM Group, British Airways and other carriers might face another attempt by EU Competition chief Margrethe Vestager to levy fines to the tune of nearly €800m related to a cargo cartel. The penalties were dismissed by an EU tribunal two years ago on procedural grounds.

German electricity giant E.On was lower after Handelsblatt reported it would post a full-year 2016 loss of €12.4bn.