Bank of England says stock market leverage has risen sharply.

Refinitiv witnesses reported explosions in Damascus, Syria; cause unclear.

After the Bank of England published its Financial Stability Report, sterling traded near one-year highs against the euro and UK gilt yields remained elevated with little change. The report says the UK financial system remains resilient and continues to support the real economy despite developments in the Middle East, but flags vulnerabilities in risk assets, sovereign debt and high‑yield credit. The FCA and PRA are reviewing measures including removing the countercyclical leverage buffer from banks’ leverage requirements and cutting the minimum Tier 1 leverage ratio from 3.25% to 3%.