'Stay calm' and 'this is the new normal': What banking CEOs are saying about the global market sell-off

Bank chiefs called for calm connected Tuesday arsenic stocks plummeted aft President Donald Trump's threats of caller tariffs.

The pan-European Stoxx 600 dropped astir 1.2% successful greeting commercialized Tuesday — with the continent's large bourses and astir sectors heavy selling disconnected — aft Trump floated a imaginable 200% levy connected French wine and champagne.

In the U.S., stock futures besides retreated. The Dow Jones Industrial Average fell astir 1.5%, the S&P 500 slid 1.6%, the Nasdaq was past seen astir 2% lower, while, earlier, markets successful Asia besides closed successful antagonistic territory.

Stoxx 600 Europe.

With fears of a re-run of past April's "Liberation Day" tariff turmoil looming implicit the World Economic Forum gathering successful Davos, slope CEOs successful Europe called for chill heads astir the imaginable of a renewed commercialized war.

"It's important to enactment calm," Commerzbank CEO Bettina Orlopp told CNBC's "Squawk Box Europe" connected Tuesday.  "If thing told america from past year's [tariff] event, it's champion to enactment calm and spot what's truly happening."

European banks were among the hardest deed successful Tuesday's reversal, with the Stoxx 600 Banks Index down 1.4% connected Tuesday, portion fiscal services slipped astir 1.3%.

It came aft markets were inactive reeling from the President's program to deed European countries with tariffs of 10% from Feb. 1, rising to 25% from June 1, if they proceed to propulsion backmost against his bid to annex Greenland.

Anthony Gutman, co-CEO of Goldman Sachs International, said that the existent sound is creating volatility for investors, informing that "this is the caller normal."

Speaking with CNBC's "Squawk Box Europe" successful Davos, Gutman said that portion the slope is optimistic connected Europe this year, the hazard of tariffs volition "create complexity for our clients who are concern leaders and person to marque concern decisions."

Steven Van Rijswijk, CEO of ING Group, said that European markets had yet weathered past year's "Liberation Day" tariff turmoil, but the increasing usage of commercialized policies arsenic a geopolitical limb had provided a "wake-up call" for the continent.

He said the existent "back and forth" rhetoric implicit tariffs and territory could person a lasting interaction connected the planetary economy.

Stoxx 600 Banks.

"Clearly, things similar geopolitics, commercialized disputes, proviso concatenation challenges are not bully for the stableness of the economy," Van Rijswijk told CNBC's "Europe Early Edition" successful Davos.

"In the end, for economies and societies, and for banks, stableness and semipermanent policies are good."

He added: "The question is: what volition beryllium the indirect impact? Do we spot organizations alteration commercialized patterns oregon nutrient determination else?

"Do we spot concern held back? It's much the indirect effects that origin interest alternatively than the nonstop effect of an import tariff implementation."

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