UPDATE 2-London stocks fall for third straight day, Fed on the radar

(For a live blog on European stocks, type LIVE/ in an Eikon
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* British stocks set for first week lower in four

* U.S. Federal Reserve to release statement at 1800 GMT

* Travel and leisure stocks slide at closing bell

* Just Eat Takeaway falls on advanced talks to buy Grubhub

* FTSE 100 dips 0.1%, FTSE 250 down 0.8%
(Adds comments, updates prices to close)

By Shreyashi Sanyal

June 10 (Reuters) - London-listed stocks fell for the third
straight session on Wednesday, as investors turned cautious
ahead of a policy decision by the U.S. Federal Reserve later in
the day.

The blue-chip FTSE 100 closed 0.1% lower and the
British mid-cap index 0.8% down. Cyclical stocks
including banks, life insurers and oil
& gas stocks ended lower for the day, pointing to
reduced risk appetite.

Focus remains on the Fed's economic outlook and chairman
Jerome Powell's speech, after the central bank's dramatic
monetary response to the COVID-19 pandemic, which was
well-received by global equity markets.

"The Federal Open Market Committee (FOMC) decision tonight
promises to be a significant one for markets," said Stephen
Innes, chief global market strategist at AxiCorp.

"Risk-on positions have been reduced, and we could see more
equity hedges put on in case the Fed signals it is now done
(providing more stimulus) for the time being."

Travel and leisure stocks, including airline EasyJet
, cinema operator Cineworld and cruise operator
Carnival, were among the biggest decliners.

Carnival, which is slated to leave the FTSE 100 later in the
month, fell 9.8%.

British stocks are now headed for their first negative week
in four as a rally in the recent few weeks, which stemmed from
hopes of a quicker recovery from the coronavirus-induced
economic slump, ran out of gas.

London-listed shares of European food ordering firm Just Eat
Takeaway.com fell 13%, to the bottom of the FTSE 100,
as it said it was in advanced talks to buy Grubhub Inc
in an all-stock deal.

Rolls Royce slipped 4.5% after being removed from
Goldman Sachs' conviction list, which is the bank's top picks
for high net worth clients.
(Reporting by Shreyashi Sanyal and Shashank Nayar in Bengaluru;
Editing by Arun Koyyur, Uttaresh.V and Gareth Jones)