UPDATE 1-Cautious trade for European shares ahead of Fed

* STOXX 600 down 0.2 pct

* Hermes rises after reporting record margins

* British high st stocks get a hammering

* Fed policy statement due after market close(Adds details and quotes, updates prices)

By Kit Rees

LONDON, March 21 (Reuters) - European shares edged lower onWednesday, with investors cautiously awaiting the conclusion ofa U.S. Federal Reserve meeting for signals on the pace ofexpected interest rate rises.

The pan-European STOXX 600 index was down 0.2percent by 0956 GMT, as more cyclical sectors such asfinancials, materials and industrials retreated.

"The Fed meeting is really the big event of the day. Whatwe're looking out for most is the forward guidance ... it's howthe accompanying statement is worded, whether it provesparticularly hawkish, whether policymakers are guiding towardsfour rate hikes this year as opposed to three," said HenryCroft, research analyst at Accendo Markets.

European tech bucked the trend and advanced 0.1percent, led be semiconductor makers.

The sector has, for now, seen little fallout from thereports of Facebook data misuse that have sent the U.S.social media giant's shares down 10 percent over the past twosessions

French luxury goods maker Hermes jumped 3.3percent after its profit margin reached a record in 2017 and thecompany increased its dividend.

It was still doom and gloom in the British retail sector,with Kingfisher down more than 8 percent after beatingfull-year earnings forecasts but warning that the UK market was"more uncertain".

Smaller UK stock Moss Bros, which makes men's suitsand formalwear, tumbled 20 percent after a profit warning whileretailer Carpetright said that it was raising capitalto try to turn its business around.

Ubisoft rose 3.7 percent after Vivendisold its entire stake in the video game maker for 2 billioneuros ($2.45 billion). Ubisoft has long opposed the French mediagroup's involvement in the company.

Vivendi's shares rose 1 percent.(Reporting by Kit Reesediting by Tom Pfeiffer)