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European markets were slammed monday, with both the german dax and french cac falling more than 3.5% Bonds backed by mortgages have become increasingly suspect as the housing market continues to deteriorate, raising questions about the bond insurer's ability to guarantee them. Portugal's stock market was down about 5%, while britain's ftse fared better, shedding only 2%.

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The s&p 500 (spx) gained 20 points, or 1.9% Stocks slid monday and tuesday on worries about how the housing and credit market crisis will drag on the economy. Today's big news was that we saw fewer claims for unemployment benefits, said mike stanfield, chief investment officer at vsr financial services.

In europe, london's ftse 100 rose 2%, france's cac 40 gained 2.1% and germany's dax added 2.5%

Asian markets ended higher, with the exception of japan. The dollar edged higher against the yen and the euro Major markets closed mostly lower in asia, while major european markets were mixed in midday trading. Global markets recovered, with major european markets mostly ending higher

Most asian markets ended higher, with the exception of the japanese nikkei. Here's a look at what was influencing trade shortly before the close