Wall Street stocks rebounded Thursday from sharp losses over the prospect of fewer US rate cuts next year despite the looming threat of a government shutdown.The plunge in New York after the Federal Reserve signalled Wednesday fewer cuts to US interest rates next year dragged down equities in Asia and Europe.The dollar initially rallied on the Fed’s move, with the yen also under pressure Thursday after the Bank of Japan kept borrowing costs unchanged, but it later gave up those gains against the euro and pound.The Bank of England held its key interest rate steady due to UK inflation rising again, and it did not commit to when or by how much it will cut rates in 2025.While that decision was widely expected, more BoE policymakers voted for a cut, which sent the pound falling against the dollar and the euro.The split suggests “members may be more nervous about the state of the economy than originally thought”, said Daniela Sabin Hathorn, senior market analyst at Capital.com.Wall Street’s main indices rose at the start of trading on Thursday, and managed to hold onto their gains in morning trading. “It is a textbook reaction to a large selloff, but like yesterday, how the market opens isn’t as important as how it finishes,” said Briefing.com analyst Patrick O’Hare.All three main indices in New York were sent spinning lower on Wednesday — led by a rout of high-flying tech titans.”In brief, the stark reality hit that the policy rate won’t be coming down as much as previously hoped (key word) and that interest rates are apt to remain higher for longer as policy makers contemplate a future that could involve sticky inflation due to ongoing growth, the wealth effect, possible trade wars, and the deportation of illegal immigrants,” said O’Hare.The rate decisions by Britain’s and Japan’s central bank were the last of the year.”With the major risk events of the week behind us, the question remains: will the traditional Santa rally take hold, or will 2024 mark a departure from the norm?” asked City Index and FOREX.com analyst Fawad Razaqzada.Markets often drift higher at the end of the year when small investors influenced by the holidays dominate trading in what is often called a Santa rally.A possible US government shutdown could spoil a Santa rally, but investors appeared unfazed on Thursday.US President-elect Donald Trump and tech billionaire Elon Musk urged Republican lawmakers on Wednesday to scupper a cross-party deal to avert a halt in non-essential government operations in the early hours of Saturday.- Key figures around 1630 GMT -New York – Dow: UP 0.6 percent at 42,588.39 pointsNew York – S&P 500: UP 0.7 percent at 5,912.00New York – Nasdaq Composite: UP 0.9 percent at 19,556.94 London – FTSE 100: DOWN 1.1 percent at 8,105.32 (close) Paris – CAC 40: DOWN 1.2 percent at 7,294.37 (close)Frankfurt – DAX: DOWN 1.4 percent at 19,969.86 (close)Tokyo – Nikkei 225: DOWN 0.7 percent at 38,813.58 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 19,752.51 (close)Shanghai – Composite: DOWN 0.4 percent at 3,370.03 (close)Euro/dollar: UP at $1.0384 from $1.0365 Pound/dollar: DOWN at $1.2560 from $1.2581Dollar/yen: UP at 157.67 yen from 154.73 yen Euro/pound: UP at 82.68 pence from 82.38 penceBrent North Sea Crude: DOWN 0.9 percent at $72.75 per barrelWest Texas Intermediate: DOWN 0.9 percent at $69.39 per barrelburs-rl/ju/sbk