Most stock markets in the Gulf ended lower on Thursday, ahead of U.S. inflation data which is likely to shape the size of the Federal Reserve's next interest rate hike.

Fed officials agreed they needed to raise the rates to a more restrictive level - and then maintain them there for some time - to meet their goal of lowering "broad-based and unacceptably high" inflation, a readout of last month's policy meeting showed on Wednesday.

Most Gulf Cooperation Council countries, including Saudi Arabia, United Arab Emirates and Qatar, have their currencies pegged to the dollar and generally follow the Fed's policy moves, exposing the region to a direct impact from monetary tightening in the United States.

Saudi Arabia's benchmark index dropped 1.1%, hit by a 1.4% fall in Retal Urban Development Co and a 1.2% decrease in Al Rajhi Bank.

The kingdom's inflation rose to 3.1% in September, driven mainly by higher food prices, rents, and the rising cost of utilities, the General Authority for Statistics said on Thursday.

Gulf bourses end mixed ahead of U.S. inflation data

The Saudi market could continue seeing negative performances while oil markets continue to show downside risk, said Farah Mourad, senior market analyst of XTB MENA.

"The main index could see some increases if uncertainties abate."

In Abu Dhabi, the index eased 0.4%, with the UAE's biggest lender First Abu Dhabi Bank falling 1.3%.

The Qatari index closed 1% lower, as most of the stocks were in negative territory including Qatar National Bank , which was down 2%.

Duba's main share index, however, advanced 0.7%, led by a 4.4% jump in blue-chip developer Emaar Properties and a 3.2% increase in Emaar Development.

According to analyst Mourad, the Dubai bourse remained volatile as global concerns clashed with local economic strength.

"The local real estate sector continues to support the market while others reacted to global concerns."

Outside the Gulf, Egypt's blue-chip index retreated 0.5%, ending two sessions of losses, helped by a 0.8% increase in top lender Commercial International Bank Egypt.

======================================== SAUDI ARABIA    down 1.1% to 11,422 ABU DHABI       fell 0.4% to 9,697 DUBAI           rose 0.7% to 3,349 QATAR           dropped 1% to 12,718 EGYPT           was up 0.5% to 9,854 BAHRAIN         was down 0.4% to 1,868 OMAN            lost 0.1% to 4,541 KUWAIT          declined 0.3% to 7,827========================================