Current market turmoil an "overreaction", Nasdaq CEO says

The current equities market turmoil is an “overreaction”, according to chief executive officer of Nasdaq stock exchange Bob Greifeld.

Speaking at the World Economic Forum (WEF) in Davos, Switzerland on Thursday, Bob Greifeld said the ongoing turmoil would most likely result in a reduction in the number of listings on global stock markets.

Recent falls have seen many global indices trade around 15-20% lower from their 2015 peak, with concerns over the falling oil price and China's slowdown seen as the main factors behind the market falls.

However, Greifeld opined that once “emotion” has left the market, businesses would do well.

"How did the low oil price turn into bad news? Better to have it at $26 per barrel than $126. And China's 6.9% growth may be disappointing, but it's still growing," he added.

"There's always a psychology about the markets, you can't underestimate where the animal spirits are…and if people want to believe in a certain direction they will.”