European markets ended the day in negative territory on Tuesday, reversing earlier gains, after stocks saw their worst day since the financial crisis in the previous trading session.

The pan-European Stoxx 600 provisionally closed down 0.88%, paring gains earlier in the session. The majority of sectors ended in the red, although basic resources was up around 1.3%.

The moves come after markets around the world tanked Monday as global investors braced for the spread of the coronavirus and oil prices fell after the collapse of OPEC talks.

On Tuesday, U.S. stocks also turned negative. The Dow Jones Industrial Average traded just below the flatline after earlier trading up 945 points. This was despite President Donald Trump floating the idea of "a payroll tax cut or relief" to offset the negative impact from the coronavirus. The potential tax incentives come on top of an $8.3 billion spending package Trump signed last month.

Back in Europe, attention remains firmly on Italy where the government has now extended its quarantine measures to the entire country amid the worst coronavirus outbreak outside Asia.

In other news, oil prices jumped on Tuesday following Monday's more than 20% plunge, which saw U.S. West Texas Intermediate crude and international benchmark Brent crude post their worst declines since 1991.