French and German stocks both closed over 2 percent higher after the decision. However, Swiss stocks fell by more than 10 percent at one point on the news, and the Swiss franc gained up to 30 percent against the euro.
"(Swiss) companies will find that their exports suddenly become much more expensive, with the resultant hit to margins that will entail, while broader European stocks should feel the benefit as the euro weakens," Michael Hewson, the chief market analyst at CMC Markets, said in a note.
"Switzerland suddenly got a whole lot more expensive and for chocolate lovers Nestle and/or Lindt chocolate just got a whole lot more expensive."
Read MoreStunned: Swiss banks, watchmakers hit hard
Major Swiss companies like Richemont, Swatch, Actelion Holdings, UBS and Julius Baer closed over 11 percent lower on the day.