(CNN) -- English Premier League side Liverpool were beaten by two penalties in Lisbon as Benfica came from behind to grasp the advantage in their Europa League quarterfinal.
The Portuguese club suffered a nightmare start when Daniel Agger put the visitors in front after just nine minutes with a neat back heel from Steven Gerrard's free kick.
But just after the half hour mark Liverpool were reduced to ten men when Ryan Babel clashed with defender Luisao after he had fouled Spanish striker Fernando Torres.
Babel appeared to put his hands in Luisao's face and the referee produced a red card.
It took Benfica less than 30 minutes to press home their advantage when Liverpool defender Emiliano Insua brought down Pablo Aimar inside the box and conceded a penalty.
Oscar Cardozo converted the spot kick and was given the chance to put his side into the lead when the referee adjudged Jamie Carragher had handled in the area on 79 minutes. Again Cardozo made no mistake from the spot.
The return leg is at Anfield next Thursday.
Fulham vanquished seasoned European opponents again as they defeated German champions Wolfsburg 2-1 at Craven Cottage.
Striker Bobby Zamora gave the English side the lead on 59 minutes with a precise curling shot from the edge of the area.
Irish winger Damien Duff made it 2-0 just four minutes later as he converted Zamora's pass.
But in the final minute Wolfsburg scored a vital away goal as Alexander Madlung emphatically headed home Zvjezdan Misimovic's cross.
After the game Fulham manager Roy Hodgson told ESPN television: "Wolfsburg are a good team but tonight I thought we made them look reasonably ordinary."
The all-Spanish tie between Valencia and Atletico Madrid finished 2-2.
Uruguayan striker Diego Forlan put Atletico in front on 59 minutes but Manuel Fernandes equalized shortly after for the home side.
Atletico struck again through Antonio Lopez only for Spain forward David Villa to rescue a draw for Valencia.
In the evening's other match Hamburg beat Belgian side Standard Liege 2-1 in Germany.
A strike from Deiudonne Mbokani gave Liege an early advantage but goals from Mladen Petric and Dutch striker Ruud van Nistelrooy secured Hamburg a lead to take into the second leg.