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July 26 (Reuters) - European shares slipped on Wednesday as investors digested a slew of corporate earnings, while caution gripped markets ahead of the Federal Reserve's monetary policy decision due later in the day.

The pan-European STOXX 600 index edged 0.1% down by 0712 GMT, set to snap a six-day winning streak that was last seen in January.

Shares of LVMH fell 3.5% after the world's top luxury group narrowly beat analysts' quarterly sales forecast due to a sharp rebound in China, but gave no outlook about the Asian country's sales.

France's blue-chip CAC 40, home to several luxury names, fell nearly 1%.

Deutsche Bank also slipped nearly 1% after the German lender posted a 27% fall in second-quarter profit as its investment banking revenue slumped.

Spain's Santander edged up as higher interest rates in Europe boosted its second-quarter net profit by 14%, while Italy's UniCredit rose 2.7% after the banking group raised its net profit and shareholder reward targets for the year.

Rolls-Royce shot up more than 20% after the British aero-engineer raised its full-year operating profit forecast by around 45%.

Investor focus was also on the U.S. Fed, which is widely expected to raise interest rates by a quarter of a percentage point, possibly a last move in its aggressive battle to tame inflation.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips)