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STOXX down 0.2

Jan 23 Reuters European equities edged lower on Tuesday as investors remained cautious ahead of the European Central Bank39;s ECB policy meeting later this week, while gains in mining stocks capped further declines.

The panEuropean STOXX 600 index was down 0.2, as of 0925 GMT.

Market participants keenly await the ECB39;s monetary policy meeting, due on Jan. 25, for clues on the interest rate trajectory and the timing of rate cuts.

While a pause in interest rate hikes is nearly priced in for the upcoming meeting, traders anticipate cuts of around 130 basis points this year, with a nearly 97 chance of the first reduction in June. 0ECBWATCH.

It would be hard for anyone to give a clear market direction because we39;re not entirely sure anymore how data fits into the picture, said Daniela Hathorn, senior market analyst at trading platform Capital.com.

On the one hand, it is showing resilience in the economy and, therefore, future expected earnings should be better. But at the same time, it enables central banks to keep policy restrictive and to keep financing tight.

Utilities and ratesensitive real estate stocks led the declines among sectors, down 0.6 each, while healthcare stocks shed 0.7.

In contrast, base and precious metal miners jumped 1.5 to lead sectoral gains as metal prices rose on a report that Chinese authorities were considering mobilising about…