The European Central Bank is sending a strong message by front-loading its QE programme and verbally intervening in the market, says Saxo Bank’s Simon Fasdal. He expects the move will result in a rally in European stocks and bonds in the coming weeks.

Fasdal, who is head of fixed income trading at Saxo Bank, predicted just one week ago that the ECB could decide to verbally intervene to stabilize bond markets after a sell-off in German bunds sent yields higher and European equities lower.

Fasdal says that the ECB’s message to the markets today from Executive Board member Benoit Coeure is a reminder to the market that the ECB is ready to act also in between meetings to ensure that its asset purchase programme works as intended.