LONDON, Oct 26 (Reuters) - European equities edged lower on Tuesday, with basic resources shares coming under pressure after ArcelorMittal forecast a far weaker fourth quarter than expected due to muted demand, lower prices and higher raw material costs.
At 0717 GMT, the FTSEurofirst 300 index of top European shares was down 0.1 percent at 1,091.22 points after rising 0.3 percent on Monday to hover near a six-month high.
ArcelorMittal, the world's largest steelmaker, fell 4.3 percent, while BHP Billiton, Anglo American and Xstrata were down 0.6 to 0.9 percent.
Analysts said investors avoided strong bets ahead of a meeting of the U.S. Federal Reserve next week.
"We had a rally since August and now people are waiting to see whether this quantitative easing is going to come through or not. There are still some uncertainties and the market is going to be range-bound until the meeting of the Fed," said Koen De Leus, strategist at KBC Securities, in Brussels.
Switzerland's biggest bank UBS fell 4.1 percent. The company said it has stopped bleeding client money for the first time since early 2008, though investment banking reported a third-quarter loss. (Reporting by Atul Prakash)