FTSE retreats after strong gains, led lower by miners and engine makers

* Blue (OTC BB: BUES - news) -chip FTSE 100 index down 0.8 pct

* Set for first daily loss in 9 sessions

* Miners under pressure after last week's rally

* Rolls-Royce falls on probe by EU competition regulators (Adds detail and quote, updates prices)

By Kit Rees and Atul Prakash

LONDON, Oct (HKSE: 3366-OL.HK - news) 12 (Reuters) - Britain's top share index fell on Monday after posting its biggest weekly gain since 2011 in the previous session, weighed down by mining and aerospace stocks.

The UK mining index was down 2.7 percent, after surging 19 percent last week to record its best weekly performance in nearly seven years.

Mining and trading company Glencore (Xetra: A1JAGV - news) fell 4.8 percent along with Antofagasta (Other OTC: ANFGF - news) , down 3.3 percent, and Anglo American, down 5 percent.

Glencore's shares rose earlier in the session on its plans to sell copper mines in Australia and Chile with a view to reducing a debt burden, but analysts said that the move was unlikely to make a big difference.

Rolls-Royce shares fell 4 percent after engine makers confirmed that they were in the process of filling out questionnaires sent to them by the European Commission regarding equipment servicing contracts in the aviation industry, in what could be a first step towards launching an investigation.

Brewer SABMiller fell 1 percent after AB InBev , the world's largest brewer, returned with a raised takeover offer.

"There comes a point ... where shareholders' adherence to what management says starts to disintegrate, whereby the offer itself just gets too tempting, and I believe that we are actually getting to that level," Ken Odeluga, market analyst at City Index, said, adding that there was, nevertheless, still some hesitation on the part of shareholders.

The benchmark FTSE 100 index was down 0.8 percent at 6,363.00 points by 1428 GMT, set for its first daily loss in nine sessions, having risen for the previous eight days.

The index gained 4.7 percent last week, its biggest weekly percentage rise since late 2011.

"The FTSE 100 is seeing some profit-taking after a strong run last week. The recent gainers are witnessing some pullback, with miners leading the index lower," Jawaid Afsar, senior trader at Securequity, said.

"The market is looking for a strong catalyst to maintain its upward march. Until then we will continue to see choppy moves."

Standard Chartered (HKSE: 2888.HK - news) shares fell 3 percent, with traders saying that a rating cut by Investec (LSE: INVP.L - news) to "hold" from "buy" was weighing on the stock.

"Despite 'catch-up' downgrades elsewhere, it appears that we continue to model a far worse outcome for the income statement than existing consensus assumptions," analysts at Investec wrote in a note, adding that they thought revenue and earnings forecasts remained too high.

On the positive side, British Airways owner International Consolidated Airlines Group rose 1.7 percent after Goldman Sachs (NYSE: GS-PB - news) started its coverage on the stock with a "buy" rating.

(Reporting by Atul Prakash; Editing by Alison Williams)