European markets opened broadly flat this morning as investors continue to monitor the spread of the coronavirus.
Bank stocks were higher following strong results from Santander, but mounting concerns about the fast-spreading virus kept a lid on gains.
Asian markets, outside of China, were mainly higher at the close this morning. Hong Kong's Hang Seng closed almost 3% lower, however, as it became the first Chinese market to open after the Lunar New Year.
Mainland Chinese markets will remain closed until next week on the order of the authorities.
There are concerns about the wider impact of the outbreak on the Chinese economy with service providers, including Starbucks and McDonald's, temporarily shutting thousands of outlets across China.
British Airways also today suspended bookings on flights to mainland China.
"We can look at precedent and outbreaks in the past to try to determine the economic impact, rather than the humanitarian impact. In the past, it was relatively limited," Ian Quigley, investment strategist at Brewin Dolphin said.
"China has been taking drastic measures to contain the spread. Ultimately, what the impact will be is difficult to determine, but it's likely to be limited."
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US markets closed higher last night as Apple delivered a strong set of earnings for its latest financial quarter.
Chief executive Tim Cook said the company was "closely monitoring" the coronavirus outbreak, which has made forecasting for the next quarter difficult.
A number of its suppliers' factories remain closed longer than expected after the new year holiday.
Traders in New York are now looking to the Federal Reserve and any hints of changes to interest rates at the end of its latest policy meeting tonight.
"This is possibly the easiest Fed policy decision for Powell as officials will unanimously vote to keep policy unchanged," Edward Moya, Senior Market Analyst with OANDA said.
"The policy voters for 2020 will be slightly more dovish as the two hawkish members, Esther George and Eric Rosengren are out."
