The new tracker certificate on the "ZKB Top Picks 2023" combines ten of the most promising Swiss stocks according to research by Zürcher Kantonalbank. The aim of this base composition is to achieve an above-average performance compared to the overall market (SPI® Index).

Changes in the interest rate environment and falling volatility, while at the same time the market outlook remains quite uncertain: capital protection products are suitable in such situations. Market developments - rising interest rates and cheaper call options - make attractive conditions possible; with full capital protection, participation of 100% in the price performance of the SMI® is possible for three years. Particularly attractive: the upside participation is unlimited.

The Swiss Market Index is still trading at almost -14% YTD. However, the last few weeks have been characterized by an upward trend - market participants seem to be cautious, but nevertheless optimistic about future developments. Volatility is dropping back towards the long-term average after some highs. The ZKB Cushion Downside Certificate on the SMI® meets the requirement for downside protection. If the index develops positively after the start date of the product, investors participate fully in its performance. However, if the index falls below the intial value during the term, the downside participation is limited to 60% - thus reducing the potential loss compared to direct investment.

The figures presented by the life insurer last week showed that the expansion of commission-based business has paid off so far. Since the beginning of the year, Swiss Life has increased income from this business area by 13%. Thanks to the robust economic situation in Switzerland and the stable demand for real estate, Swiss Life has also been able to record appreciation gains on its properties - an important asset class for the company.

Many of the quarterly results reported by European banks in recent weeks exceeded analysts' profit estimates. In particular, financial institutions from the euro zone were able to increase their profits noticeably in the third quarter. A key source of income for all universal and retail banks is the interest margin business, the profitability of which is significantly influenced by the general interest rate situation in the respective economic area.

When the outlook from economic journalists is bleak and markets send mixed signals, it becomes more difficult to find attractive risk-return profiles, especially for risk-conscious investors.

In such situations, barrier reverse convertibles with defensive parameters may be suitable. The still elevated volatility provides attractive option premiums, while low barriers reduce the probability of a barrier hit event.

The German stock index DAX was not spared losses this year either. Since the beginning of the year, the leading index has lost over 19%, reflecting the rather pessimistic outlook for the domestic economy. High energy prices are weighing on households as well as companies and their earnings, geopolitical upheavals are fuelling uncertainty.