For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window

By Sruthi Shankar

Nov 8 (Reuters) -The UK's FTSE 100 fell to a three-month low on Friday, dragged down by a profit warning from homebuilder Vistry and lackluster stimulus measures from China weighed on investor sentiment.

The blue-chip FTSE 100 .FTSE dropped 0.8%, having fallen about 1% earlier to its weakest level since August 8. The index was on track for its third straight weekly decline.

Shares inVistry VTYV.L plummeted by nearly 19%—the steepest drop among FTSE 100 components—after issuing its second profit warning in a month, citing ongoing cost pressures in its South Division.

This dragged the FTSE 350 housebuilder index .FTNMX402020 to a near one-year low. Peer Persimmon PSN.L recently flagged concerns over escalating costs for 2025 projects.

"Vistry's latest update offered further evidence that build cost inflation is back with a vengeance for the construction sector," said AJ Bell investment director Russ Mould.

"Vistry will have to work hard to rebuild market confidence and unfortunately it seems to be doing so at time when the foundations underpinning the industry as a whole look a bit more shaky."

Meanwhile, stocks exposed to China’s market, such as luxury goods company Burberry BRBY.L and miners Antofagasta ANTO.L, Rio Tinto RIO.L, and Glencore GLEN.L, also saw declines.

China on Friday announced a support package which was intended to alleviate debt burdens on local governments but failed to meet market expectations of a more substantial fiscal boost.

China-focused financial firms, including HSBC HSBA.L and Prudential PRU.L, also dropped 2.5% and 2.8%, respectively, amid ongoing concerns over China's economic recovery.

The developments in China capped a volatile week that included a surge on Wall Street following RepublicanDonald Trump's return to the U.S. presidency, alongside interest rate cuts by both theFederal Reserve and theBank of Englandon Thursday.

The midcap FTSE 250 index .FTMC slipped 0.6% on Friday but was on track for mild weekly gains.

British Airways owner IAG ICAG.L jumped 6.3% after its third-quarter operating profit beat forecasts, as growth on its lucrative transatlantic routes helped it outperform rival airlines.

Reporting by Sruthi Shankar in Bengaluru; Editing by Tasim Zahid

 For related prices, Reuters users may click on - * UK stock report .L FTSE index: 0#.FTS6 techMARK 100 index: .FTT1X FTSE futures: 0#FFI: Gilt futures: 0#FLG: Smallcap index: .FTSC FTSE 250 index: .FTMC FTSE 350 index: .FTLC Market digest: .AD.L Top 10 by vol: .AV.L Top price gainers: .NG.L Top % gainers: .PG.L Top price losers: .NL.L Top % losers: .PL.L * For related news, click on - * UK hot stocks: HOT and GB Wall Street: .N Gilts report: GB/ Euro bond report GVD/EUR Pan European stock report: .EU Tokyo stocks: .T HK stocks: .HK Sterling report: GBP/ Dollar report: USD/ * For company prices, click on - * Company directory: UKEQ By sector: FTAX * For pan-European market data, click on - * European Equities speed guide................ EUR/EQUITY FTSE Eurotop 300 index........................... .FTEU3 DJ STOXX index................................... .STOXX Top 10 STOXX sectors........................ .PGL.STOXXS Top 10 EUROSTOXX sectors................... .PGL.STOXXES Top 10 Eurotop 300 sectors.................. .PGL.FTEU3S Top 25 European pct gainers.................... .PG.PEUR Top 25 European pct losers..................... .PL.PEUR