Stock markets in the Gulf ended mixed on Thursday as investors assessed the monetary policy and inflation outlook in the world's largest economy.

Traders responded to a U.S. inflation print that was in line with expectations by ramping up bets on a Federal Reserve rate cut next month, though there was less certainty on what would happen after that given Donald Trump's return to office. FEDWATCH

The Fed's decisions have a significant impact on the region's monetary policy, as most currencies there are pegged to the U.S. dollar.

Saudi Arabia's benchmark index <.TASI> declined 1.2%, weighed down by a 0.4% fall in aluminium products manufacturer Al Taiseer Group <4143.SE>. Saudi Telecom Company (STC) <7010.SE> dropped 2.2%.

The kingdom's sovereign wealth fund PIF has raised 3.86 billion riyals ($1.03 billion) from selling a 2% stake in telecoms firm STC, PIF said on Thursday, as it seeks to raise funds for the Gulf country's economic diversification programme.

Dubai's main share index <.DFMGI> eased 0.1%, hit by a 1% fall in top lender Emirates NBD <ENBD.DU>.

In Abu Dhabi, the index <.FTFADGI> , helped by a 1.5% rise in conglomerate International Holding <IHC.AD>.

However, Lulu Retail Holdings <LULU.AD> - Middle East's biggest hypermarket chain operator - finished flat in market debut.

The Qatari benchmark <.QSI> added 0.3%, with petrochemical maker Industries Qatar <IQCD.QA> rising 1.7%.

Outside the Gulf, Egypt's blue-chip index <.EGX30> edged 0.1% higher, led by a 1.5% gain in tobacco monopoly Eastern Company <EAST.CA>, a day after report a steep rise in first-quarter profit.

SAUDI ARABIA

<.TASI> fell 1.2% to 11,791

ABU DHABI

<.FTFADGI> rose 0.3% to 9,400

DUBAI

<.DFMGI> eased 0.1% to 4,729

QATAR

<.QSI> gained 0.3% to 10,455

EGYPT

<.EGX30> up 0.1% to 31,462

BAHRAIN

<.BAX> was up 0.4% to 2,052

OMAN

<.MSX30> down 0.2% to 4,644

KUWAIT

<.BKP> added 0.1% to 7,831

($1 = 3.7551 riyals)

(Reporting by Ateeq Shariff in Bengaluru)