Watch Art Cashin: Relief rally after Europe closes

Cashin saw sigh of relief when Europe closed

Art Cashin, UBS director of floor operations at the NYSE, said weakness in Europe weighed on U.S. stocks this morning, which have bounced back since major averages closed across the pond.

"It's very clear a sigh of relief here when Europe closed," Cashin said.

Trading has been choppy Tuesday with markets digesting another crash in crude oil prices and downbeat news about the global economy. European markets closed at session lows after the European Commission lowered its growth outlook for the euro area and warned inflation will be below the European Central Banks's (ECB) prediction.

Reports of tension between Europe's central bankers and ECB head Mario Draghi took stocks a leg lower Monday morning ahead of the ECB's monthly rate-setting meeting Thursday.

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"The ball is clearly in Europe's court," said Cashin. "Draghi's got to do something."

Europe's bond market is different than that of the U.S. because it does not have a single, fluid structure; therefore, replicating the stimulus, or QE, the U.S. employed will be difficult.

Cashin explained countries may question Draghi's strategy if he starts picking and choosing which sovereign bonds to buy over others.

"It's an uphill fight," added Cashin.

—By CNBC's Kristen Scholer.