European markets lost more ground due to fears over the region's debt crisis on Friday, though they managed to claw back some of the losses in late trading.
The main British, French and German indexes had lost more than 2% at lunchtime but later recovered, with the FTSE ending down 0.2%, Germany's Dax finishing 0.7% lower and France's Cac closing 0.2% down.
The FTSEurofirst 300 index of top European shares closed down 0.5%.
In the United States, stocks rebounded from steep opening losses as buyers sought bargains, and the Dow JonesAverage gained 1.25%.
The market volatility came despite the German parliament approving its part of the 750 billion euro bail-out for the eurozone.
In Brussels, European Union finance ministers supported Germany's demand for harsher sanctions on countries which flout the bloc's defict rules, though they reached no immediate decisions on changes to prevent another Greek-style debt crisis.
European Central Bank President Jean-Claude Trichet sought to calm nervous markets by declaring the euro was not in danger.
