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* Ericsson slips on lower-than-expected Q4 sales

* Swatch slips after 2023 results miss estimates

* STOXX down 0.2%

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

The pan-European STOXX 600 index was down 0.2%, as of 0925 GMT.

Market participants keenly await the ECB'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..

It would be hard for anyone to give a clear (market) direction "because we'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 rate-sensitive 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 2 trillion yuan ($279.01 billion) to stabilise a bleak stock market.

Markets also digested corporate earnings updates, with shares of Millennium bcp down 6.3% after its top shareholder, China's Fosun International, sold a 5.6% stake in the Portuguese lender.

Logitech lost 6.5%, with analysts saying the computer peripheral maker's forecast hike had been expected and some investors might have booked profits after the stock's recent strong run.

Ericsson slipped 0.5% after the Swedish telecom equipment provider posted lower-than-expected fourth-quarter sales and warned of prolonged weakness in the 5G market.

Swatch slipped 1.4% after the world's biggest watchmaker missed market estimates for its 2023 results.

On the data front, the euro zone consumer confidence flash estimates are scheduled for release at 1500 GMT.

($1 = 7.1682 Chinese yuan renminbi) (Reporting by Shristi Achar A in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema)