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[Bloomberg]( Global stocks fall on Fed, shutdown avoidance bill moves to House, and oil falls again. Oh well, Fed Markets are nervous that yesterday’s [Federal Reserve decision]( will lead to too much tightening from the central bank as Chair Powell said [balance-sheet reduction]( will continue apace. Overnight, the MSCI Asia Pacific Index dropped 1.2 percent while Japan’s Topix index closed 2.5 percent lower, pushing the gauge [into a bear market](. In Europe, the Stoxx 600 Index was 1.1 percent lower at 5:45 a.m. Eastern Time as the region’s stocks matched global peers. S&P futures pointed to some relief as they were [very slightly positive](, the yield on the 10-year Treasury was at 2.765 percent and gold was higher. Spending bill The Senate passed a [temporary spending bill]( last night which aims to keep the government funded until February in a attempt to put off a confrontation with President Donald Trump over funding for a proposed border wall. The House is set to vote early today on the measure, which is expected to pass after leaders from both sides [signaled support](. While the White House has not said whether the president would sign the bill, the administration seems to have backtracked somewhat from Trump’s comments last week where he said he would be proud to shut the government down over the wall issue. Sponsored Content by Barclays Gen Z have billions in buying power They’re more populous and influential on consumer spending than any generation before them, and they have unique demands. Companies planning to reuse marketing strategies developed for Millennials to sell to this generation need to think again. [See how Gen Z are reshaping key sectors.](  European central banks Investors were caught a little off guard by the Swedish central bank’s decision to [raise rates this morning](, the first move higher in seven years. At 7:00 a.m. the Bank of England will announce its latest policy decision, with [no change in rates expected]( and no press conference from Governor Mark Carney. The Czech central bank is also expected to hold rates unchanged at 7:00 a.m. Elsewhere, the Bank of Japan [left stimulus unchanged]( after its meeting overnight. Oil falls (again) Any hopes of respite for oil traders were dashed this morning when the commodity fell again. A barrel of West Texas Intermediate for February delivery dropped more than 1.8 percent to [$46.32 by 5:45 a.m.]( while Brent crude was trading under $55. The latest selloff is less to do with the usual supply concerns and more with worries about whether the latest Fed move will [choke global growth]( prospects. Saudi Arabia’s Energy Minister Khalid Al-Falih yesterday [blamed a range of factors]( including dollar strength and investor speculation for the moves. Coming up… At 8:30 a.m. weekly jobless claims numbers are expected to show an increase to 215,000 from last week’s [surprise low 206,000 count](. The Philadelphia Fed December outlook is published at the same time. The U.S. November Leading Index is released at 10:00 a.m. The Treasury tests the post-Fed bond market at 1:00 p.m. with a sale of $14 billion of five-year notes. In earnings today, Nike Inc., Blackberry Ltd., and Walgreens Boots Alliance Inc. are among the companies reporting. What we've been reading This is what's caught our eye over the last 24 hours. - Markets [finally grasp]( what the Fed means by QT. - Soros fund is [cutting back on bets]( that made its founder a billionaire. - Goldman’s $1 trillion asset manager is [betting on stocks in 2019](. - It’s not all [doom and gloom]( for the world economy. - Trump poised to [lift Rusal sanctions]( as Deripaska cuts stake. - The miseducation of [Emmanuel Macron](. - The joy of giving [lasts longer]( than the joy of getting. And finally, here’s what Joe's interested in this morning So it turned out that with the entire world expecting a "dovish hike" there was no way that the Fed could deliver anything that would really satisfy expectations. In fact, [the Fed didn't even come close to delivering](. There's going to be a lot of analysis about why the market reacted so violently to Fed Chairman Jay Powell (a lot of people are pinning the blame on his comments about the balance sheet wind down) but here's what struck me: when it came to the outlook for 2019, Powell was pretty clear that the FOMC will be flexible and react to the data and do whatever is necessary to maintain steady job growth. If data starts to deteriorate, it seems likely the Fed is comfortable with not hiking. Powell invoked 2016, when they only hiked one time, down from expectations of four hikes originally. But what was less compelling was Powell's explanation for why any hike is justified. As the University of Oregon's Tim Duy [puts it](, "It appears to be an overly mechanical reaction to the model outcomes." Given subdued inflation, and a growing number of risks, there's not a particularly compelling case that this economy is in need of more rate hikes to prevent overheating. At one point, Powell even talked about how inflation dynamics haven't changed much, even as the unemployment rate has fallen from 10 percent to 3.7 percent, which should give pause to any assumptions that lean heavily on models. There seems to be an element of hikes for the sake of hikes, and that may have spooked the market. Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find [FOLLOW US [Facebook Share]]( [Twitter Share]( [SEND TO A FRIEND [Share with a friend]]( You received this message because you are subscribed to Bloomberg's Five Things newsletter. 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