The chief executive of Goldman Sachs Asset Management's (GSAM) international division played down fears of a stock market correction despite concerns over international trade and hefty valuations.

"It seems a bit early to us to be concerned about a full-on, global meltdown in equities," Sheila Patel told CNBC's "Squawk Box Europe" Thursday.

"Are there valuation issues in equities? Certainly. Have we seen clients get more cautious in areas such as U.S. equities? Definitely. But have we seen full-scale fear come into the marketplace? No … We are not poised for that crack in the market just yet."

Patel's comments come as global investors keep a close eye on President Donald Trump's next move on international trade.

Withdrawing from trade deals and threatening import tariffs in order to protect and promote U.S. business, Trump has turned the status quo of global trade on its head. GSAM's Patel said clients were looking to actively manage their portfolios to mitigate against potential upsets in global markets caused by trade disputes and potential tariffs, particularly in emerging markets (EM).

"We've seen clients both very active in EM debt and equities. In the latter, they're focused on, and we're focused on, more domestically-orientated stories and small and mid-cap (businesses). For example most of the Indian trade has been about Indian equities that are exposed to the growth in the domestic economy," she said.