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Negative reactions were the order of the day to yesterday’s flood of downgrades or other news. A near 6% drop in the market, after Wall Street’s lurch set the tone.

In several ways, Australia is better placed than many other countries to withstand the global recession now underway.

Consumer and business confidence are moving in different directions.

In the two days after the US elections last Tuesday, Wall Street fell sharply and the Dow lost more than 900 points, or more than 9%, as investors started adjusting to the coming recession.

Another week where recession, or its threat, will be the watchword.

Barack Obama’s historic election victory is likely to see the US shift towards more interventionist economic policies, a more progressive approach to the environment and a less unilateralist foreign policy.