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"[Philipp Hildebrand's resignation] may diminish the resolve of the SNB to defend the 1.20 per euro level"
- Derek Halpenny, European head of currency research at Bank of Tokyo-Mitsubishi UFJ Ltd.
Swiss stocks dropped for a third consecutive day on Monday as the Swiss National Bank President Philipp Hildebrand resigned after a scandal involving a controversial currency trade made by his wife.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies, lost 0.44%, or 26.29 points, to 5,987.54. The broader Swiss Performance Index erased 0.38%, or 20.74 points, to 5,390.35.
"Hildebrand was known as a bit of a maverick -- bolder and willing to take risks when it comes to policy decisions," said Derek Halpenny, European head of currency research at Bank of Tokyo-Mitsubishi UFJ Ltd. in London.
"So the initial reaction to him stepping down is that it may diminish the resolve of the SNB to defend the 1.20 per euro level."