Despite welcoming the Government's stimulus package which injects half the national surplus into bonuses for pensioners, families and first-home buyers Federal Opposition Leader Malcolm Turnbull said last night the Rudd Government should have acted sooner to shield Australia from the fallout of the global economic crisis.

In a televised address to the nation, Mr Turnbull accused the Government of having failed to heed the warning signs earlier in the year that pointed to the scope of the problem.

''Regrettably, Mr Rudd's Government missed the warning signs at the beginning of the year and talked up inflation, and consequently interest rates, at precisely the wrong time.''

Mr Turnbull called on the Government to publish the advice given to it that had prompted its stimulus package. He also maintained the Opposition was willing to work with the Government in a bipartisan fashion to deal with the economic crisis.

Treasurer Wayne Swan said yesterday the Government's stimulus package would not prevent the Reserve Bank of Australia from cutting interest rates further.

Economists believe the economic stimulus created by the package could limit the extent to which the Reserve Bank cuts the cash rate in future.

Mr Swan said the Reserve made its decisions independently of the Government.

''But it made it very clear for the last couple of months that it is looking to ease monetary policy, and certainly our easing of fiscal policy will work in tandem with what the RBA's doing,'' he said.

Financial markets are still predicting a further cut, of half a percentage point taking the cash rate down to 5.5 per cent when the central bank board next meets on November 4.

News of the American recession were responsible for a general slump on world stockmarkets yesterday. Europe's main indices were down about 2 per cent early on.

Investors took profits in Asia and Europe after stocks ended lower on Wall Street, despite news that Washington would inject up to $US250billion ($A357billion) into ailing banks to try to end the worst financial crisis since the 1930s.

One bright spot was Tokyo, which ended up by 1.06 per cent, building on Tuesday's record 14 per cent surge. But Hong Kong closed down 5 per cent and Seoul 2 per cent.

In early European trade, London shed 2.22per cent, Frankfurt 2.35 per cent and Paris 1.94 per cent. Madrid slid by 1.15 per cent and Zurich by 1.33 per cent.

Commerzbank analyst Antje Praefcke said, ''After the early burst of euphoria on stockmarkets over the rescue packages launched worldwide ... the dust slowly seems to be settling and the last few days' roller-coaster [higher] is being followed by a kind of morning-after sentiment.''

Along with the American recession, fears are growing that Japan and Europe are heading for a spell of economic stagnation or recession.

Chancellor Angela Merkel said the German economy was heading for a slowdown but the downturn would not be a long-lasting one.