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* FTSE 100 down 0.4 pct
* Set for fifth month of straight gains
* WPP jumps after update
By Kit Rees
LONDON, Oct 31 (Reuters) - British shares retreated onMonday but remained headed for their fifth straight month ofgains, as advertising group WPP gained after reporting itsthird-quarter results.
The blue chip FTSE 100 index was down 0.4 percent at6,967.14 points by 0956 GMT, in line with the broader Europeanmarket.
Shares in WPP rose 3.2 percent, leaving them ontrack for their biggest daily gain in four months. WPP, theworld's largest advertising group, reported results in line withexpectations {nL8N1D11Q2].
"We are encouraged by the positive nature of this morning'supdate and remain fundamentally positive on WPP's ability tocapitalise on a solid medium-term outlook for global advertisingspend," Roddy Davidson, an analyst at Shore Capital Markets,said in a note.
The sell-off, however, was broad-based, with retailer Next,, building materials supplier Travis Perkins andMarks and Spencer among the biggest losses. All weredown more than 2 percent.
The FTSE 100 index was set to mark its fifth month of gainsin a row, helped by a rally in banks and mining companies. Bankswere boosted by last week's well-received earnings from Barclays and Lloyds, with the FTSE 350 banking sector hitting its highest level for the year.
October saw the FTSE 100 set a record high of 7,129.83points. A weaker pound has bolstered the index, which hasrallied about 10 percent since the Britain voted to leave theEuropean Union in June. The cheaper pound helps the index'sinternational, dollar-earning firms.
Some analysts, however, were more cautious on the outlookfor British shares.
"(The FTSE) is still continuing the positive run of gainssince Brexit, so it's a Brexit bounce, but it's run into thatprevious record high ... and pulled back quite significantlyfrom there," said Jasper Lawler, market analyst at CMC Markets.
Investors were holding back before upcoming central bankinterest rate decisions and the U.S. presidential election,Lawler added.
"I think no one's really got the confidence to buy themarket up through into new record highs."
The more domestically exposed FTSE 250 index was setto end the month with a slight loss, down 2 percent for October.It has been weighed down by a spate of profit warnings and largedeclines from companies including Berendsen, Cobham, Senior and Keller. (Editing by Larry King)
