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Assessing market volatility day-to-day: Goldman Sachs

It's been a volatile start to the year for markets and David Solomon, co-head of the Investment Banking Division at Goldman Sachs, told CNBC that he was watching markets day-to-day to see how the situation pans out.

"Everybody is watching (markets) and trying to understand what's going on. I'd like to watch the market a little bit more and watch how things develop and unfold before making a stronger statement," he told CNBC on the sidelines of the World Economic Forum (WEF) in Davos on Friday.

Current market volatility has been largely attributed to concerns over low oil prices, the U.S. outlook and a possible China hard landing. Asked whether markets were over-reacting to these concerns, Solomon was cautious.

"I wouldn't necessarily say it's an over-reaction – markets are pretty smart – but at the same point I think we've had a few weeks of volatility and I think you want to be cautious in terms of determining exactly what's causing that."

"But... people are little bit more risk-off and that's affecting confidence and that will have some impact on decisions over time if it continues this way."

Despite the shaky investment backdrop, Solomon said that those that he had met in Davos were sanguine about the economic outlook.

"There's no question that there's been a re-pricing, a correction, in a variety of markets but one of the things that have come out of my conversations with business people at Davos that's interesting is that their businesses are chugging along ok."

"People are concerned about growth which has been sluggish…but at the same point there is still growth and people are progressing in their businesses."

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