Category: Market News

PureTech Health’s (LSE:PRTC) founded entity, Celea Therapeutics, has enrolled the first patient in SURPASS-IPF, a global Phase 3 clinical trial designed to compare its investigational therapy, deupirfenidone, directly against the approved treatment pirfenidone in patients with idiopathic pulmonary fibrosis (IPF).

The randomized study will follow around 1,100 participants over a 52-week period and is the first industry-sponsored Phase 3 IPF trial to evaluate two active therapies without a placebo arm. Every patient enrolled will receive treatment, with the primary objective of determining whether deupirfenidone offers superior preservation of lung function compared with pirfenidone.

Phase 3 Programme Builds on Earlier Clinical Success

The launch of SURPASS-IPF follows Celea’s recent $180 million financing and marks the next stage in the development of deupirfenidone after encouraging Phase 2b results.

Previous clinical data indicated the investigational therapy may significantly reduce the rate of lung function decline while offering an improved tolerability profile compared with existing antifibrotic treatments. The company believes these characteristics could help address barriers that have limited the adoption of current therapies.

Top-line data from the Phase 3 study are anticipated during the second half of 2029. According to the company, discussions with U.S. regulators suggest that a single successful Phase 3 trial may be sufficient to support a regulatory submission, making SURPASS-IPF an important milestone for both Celea Therapeutics and PureTech.

Financial Position Remains a Key Consideration

Despite continued progress across its clinical pipeline, PureTech’s financial profile remains constrained by ongoing operating losses, negative free cash flow and relatively modest revenue generation.

These challenges are partly balanced by a solid balance sheet, while recent management updates have highlighted advances across the company’s development portfolio, improvements in operating losses and available funding runway.

Nevertheless, execution and future financing requirements remain important factors as the company advances its late-stage clinical programmes. Valuation also continues to be affected by the absence of earnings and dividend support, while technical indicators remain broadly neutral.

About PureTech Health

PureTech Health is a London-listed biotherapeutics company that creates and develops businesses focused on innovative treatments for serious diseases using its hub-and-spoke operating model.

One of its founded entities, Boston-based Celea Therapeutics, is developing therapies for respiratory diseases, including idiopathic pulmonary fibrosis.

Its lead candidate, deupirfenidone (LYT-100), is a next-generation deuterated version of pirfenidone designed to improve both efficacy and tolerability. The therapy has received Orphan Drug Designation in both the United States and the European Union and is currently in Phase 3 development as a potential new treatment option for IPF patients.

Financial markets are once again pricing in higher geopolitical risk after renewed military exchanges between the United States and Iran cast doubt on the durability of the recent ceasefire.

President Donald Trump stated that the ceasefire is “over” and described ongoing diplomatic efforts as “a waste of time,” increasing uncertainty over the outlook for the region.

Energy Markets React First

Oil prices have responded quickly to the renewed tensions, reversing much of their recent decline.

WTI crude briefly traded below $70 a barrel before rebounding above $74 as investors reinstated a geopolitical risk premium. Any sustained increase in energy prices could revive inflation concerns and alter expectations for global monetary policy.

Bond Markets Reflect Inflation Concerns

The move has also been reflected in U.S. government bonds, with the 10-year Treasury yield climbing to 4.56%.

Higher yields suggest investors are reassessing the inflation outlook and the possibility that the Federal Reserve may need to keep interest rates elevated for longer.

Although stock markets have so far remained resilient, further escalation in the Middle East could increase volatility across global financial assets.

Investors Await the Next Catalyst

Markets continue to expect no policy change at the Federal Reserve’s July meeting, but expectations for additional tightening later this year remain sensitive to incoming inflation data and energy prices.

Oil prices, Treasury yields and geopolitical developments are therefore likely to remain the key indicators shaping investor sentiment over the coming weeks.

As Yogi Berra famously observed, “It ain’t over till it’s over,” and financial markets continue to reflect that uncertainty.

Analysts Dismiss Oversupply Concerns

Nomura believes recent concerns about a slowdown in the artificial intelligence memory market are misplaced, arguing that major investment announcements by South Korean chipmakers are unlikely to create excess supply in the foreseeable future.

The brokerage noted that memory manufacturers and related businesses have unveiled investment plans totaling around 4.8 quadrillion won ($3.5 trillion), with approximately 3.7 quadrillion won allocated to memory-focused projects.

While the announcements sparked concerns about future oversupply, Nomura expects market conditions to remain tight.

High-Bandwidth Memory Continues to Lead Demand

According to the brokerage, demand generated by artificial intelligence continues to outstrip supply, particularly for high-bandwidth memory (HBM), where manufacturers are concentrating production because of stronger profitability.

As a result, supply of conventional DRAM and NAND products is expected to remain constrained.

Nomura also noted that semiconductor manufacturing hubs require years to complete, meaning recently announced projects will have little impact on production over the medium term.

Long Development Timeline Limits Near-Term Supply Growth

The firm pointed to the Yongin Semiconductor Cluster, estimating that the project will not begin limited production until late 2027 despite being launched nine years ago.

That timeline illustrates how major semiconductor investments typically require more than a decade before generating meaningful commercial output.

Meta’s Computing Strategy Could Expand AI Adoption

Nomura also challenged concerns surrounding Meta’s (NASDAQ:META) plans to sell excess computing capacity.

Rather than indicating softer demand, the brokerage believes the move should improve asset utilisation while providing additional computing resources for companies including OpenAI and Anthropic.

Lower computing costs could encourage broader AI adoption, supporting continued investment in memory and other semiconductor technologies.

Gold continues to trade above the key $4,100 level as investors balance geopolitical uncertainty with expectations for future U.S. monetary policy. Renewed tensions in the Middle East have reinforced demand for defensive assets, while markets remain highly sensitive to inflation data and interest-rate expectations.

Safe-Haven Demand Remains Elevated

Military developments involving the United States and Iran have renewed demand for traditional safe-haven assets. Even if geopolitical tensions ease temporarily, investors are likely to remain cautious until there is greater clarity over the regional outlook.

Should diplomatic progress materialize, gold could experience a period of profit-taking. However, sustained geopolitical uncertainty continues to provide underlying support for prices.

Inflation and Interest Rates Take Centre Stage

Federal Reserve policymakers remain divided over the future direction of interest rates, leaving markets uncertain about the timing of future policy changes.

Although higher interest rates generally reduce the attractiveness of gold, investors are also weighing inflation risks, slowing economic growth and geopolitical uncertainty. This combination has helped limit downside pressure on the precious metal.

Upcoming U.S. inflation reports, including the CPI and PPI, could determine whether gold extends its rally or enters a period of consolidation.

Medium-Term Trend Remains Positive

Market participants are also monitoring movements in the U.S. dollar, Treasury yields and energy prices, all of which continue to influence gold’s performance.

While some institutions have lowered their long-term forecasts, gold continues to benefit from an environment characterised by elevated uncertainty. As long as prices remain above key support near $4,100, the medium-term outlook remains constructive despite the possibility of short-term volatility.

Growing advances in quantum computing are prompting cryptocurrency companies to accelerate preparations for a future in which today’s encryption methods may no longer be sufficient to protect blockchain networks and digital assets.

Quantum technology has the potential to solve mathematical problems far beyond the capabilities of traditional computers, creating the possibility that existing cryptographic systems could eventually be broken. That presents a significant long-term challenge for the cryptocurrency market, which relies on established encryption techniques to secure wallets and validate transactions.

Industry concern increased following research released by Alphabet’s Google earlier this year suggesting that quantum computers capable of breaking modern encryption could emerge as early as 2029. Analysts at Citigroup have also argued that rapid progress in quantum computing and artificial intelligence is shortening the expected timeline for potential cyber risks.

The growing strategic importance of quantum technology has also attracted government attention, with U.S. President Donald Trump signing executive orders last month aimed at strengthening domestic quantum capabilities.

Blockchain developers are now exploring the adoption of post-quantum cryptography, although the migration is expected to be lengthy and technically demanding.

“It’s the most direct and existential threat towards cryptocurrencies and crypto networks,” said Chris Tam, head of quantum innovation at BTQ Technologies.

Industry Evaluates Long-Term Security Challenges

Most blockchain networks continue to rely on elliptic-curve cryptography, which secures digital ownership through public and private key pairs. While current computers cannot realistically derive private keys from public ones, sufficiently advanced quantum computers may eventually be capable of doing so.

“Crypto especially is uniquely exposed because blockchains are transparent and permanent,” said Utkarsh Ahuja, managing partner at Moon Pursuit Capital.

Researchers estimate that a significant proportion of Bitcoin’s circulating supply could become vulnerable if quantum attacks become feasible, increasing concerns over future market stability.

Cristiano Ventricelli of Moody’s Ratings warned that a large-scale theft could severely affect confidence across the cryptocurrency market. “Everyone will feel the impact,” he said.

Developers Work on Post-Quantum Solutions

Experts believe there is still time to prepare before quantum computing reaches that level of capability, allowing blockchain projects to implement post-quantum security standards.

However, developers caution that newer encryption methods remain under active development and could introduce higher costs, increased storage demands and performance trade-offs.

“There is an engineering challenge ahead, but there are engineering solutions already on the table,” said Zach Pandl of Grayscale.

While no major blockchain has yet deployed post-quantum signature algorithms, projects including the Ethereum Foundation and the Algorand Foundation have already begun developing long-term roadmaps.

“The sort of disaster scenario is that it happens way sooner than we think,” said Christopher Smith, CEO of Quantus. “It felt right to start doing (something) now, because it’s responsible to have a plan,” added Bruno Martins of the Algorand Foundation.

Bernstein has revised its outlook for the nickel market, increasing its average 2026 price forecast to $17,357 per metric ton from an estimated $15,164 per ton this year. The investment firm believes the global market is moving closer to balance, with only a limited supply surplus remaining after expectations at the beginning of the year pointed to a much larger oversupply of more than 200,000 metric tons.

Indonesia Drives Market Changes

The brokerage said Indonesia continues to have the greatest influence on global nickel prices through tighter ore availability, higher benchmark HPM pricing and growing uncertainty surrounding mining policy.

Production costs have risen sharply, with Bernstein estimating C1 cash costs of $17,870 per ton at the 75th percentile and $18,650 per ton at the 90th percentile, both well above 2025 levels.

Reports that Indonesia may increase RKAB mining quotas to between 300 million and 350 million wet metric tons during its July review are believed to have contributed to June’s decline in nickel prices.

Supply Chain Disruptions Add Cost Pressure

Geopolitical tensions involving Iran, the United States and Israel have also disrupted sulphuric acid supplies used in HPAL nickel production. Rising granular sulphur prices—from under $600 per ton to around $1,000—have forced some Indonesian producers to reduce output.

Bernstein expects these cost pressures to ease once supply conditions improve, particularly if geopolitical tensions subside and sulphuric acid availability recovers.

Demand Outlook Remains Stable

Electric vehicle demand has remained mixed, with global sales increasing just 0.5% through April. Battery electric vehicles continued to grow, while plug-in hybrid sales weakened. LFP batteries remain dominant, although Bernstein believes sodium-ion batteries could become a more meaningful source of nickel demand as production costs fall over the next few years.

Meanwhile, stainless steel continues to underpin the market. Combined nickel inventories on the LME and SHFE stand at approximately 375,000 metric tons, but Bernstein expects stainless steel demand to increase by around 5% year-on-year, helping support overall consumption.

The rapid growth of artificial intelligence is beginning to reshape industries beyond software as companies accelerate investment in robotics and automation. Physical AI is emerging as one of the next major technology themes, with applications expanding across manufacturing, logistics, transportation, defence and infrastructure.

Growth Depends on More Than Better AI Models

Unlike digital AI, success in physical automation requires reliable hardware, advanced sensors, battery technology, industrial networking and continuous data collection from real operating environments.

This makes commercial deployment more demanding, but also creates higher barriers to entry for competitors.

Industrial Ecosystems Stand to Benefit

The companies likely to benefit extend far beyond robot manufacturers.

Demand for automation is expected to support suppliers of industrial software, machine vision, embedded computing, semiconductors, networking equipment and safety systems as businesses modernise operations.

Robotics-as-a-Service could further accelerate adoption by reducing upfront investment costs and making automation accessible to a broader range of customers.

A Long-Term Structural Trend

Physical AI is unlikely to scale as quickly as generative AI, but its adoption is expected to build steadily as companies gain operational experience and improve deployment efficiency.

For investors, the opportunity may lie not only in the robots themselves but across the broader industrial ecosystem that enables intelligent automation.