Most stock markets in the Gulf ended higher on Thursday, driven by softer core U.S. inflation data that fuelled hopes for Federal Reserve rate cuts.

Data showed on Wednesday the U.S. consumer price index (CPI) rose 2.9% year on year in December, meeting expectations, while core inflation increased by 3.2%, marginally below the predicted 3.3%.

Investors drew encouragement from the inflation data, which was further bolstered by Tuesday's release of U.S. producer price data showing moderate growth in December.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the dollar.

Saudi Arabia's benchmark index <.TASI> gained 0.4%, with Al Rajhi Bank <1120.SE> rising 0.5% and the country's biggest lender Saudi National Bank <1180.SE> advancing 1.3%.

In Qatar, the index <.QSI> ended 0.4% higher, led by a 2.4% increase in Commercial Bank <COMB.QA> and a 1.5% rise in Dukhan Bank <DUBK.QA> ahead of its earnings announcement.

Meanwhile, Hamas and Israel reached a deal for a ceasefire in Gaza that mediators said would take effect on Sunday and include a release of hostages held there during 15 months of bloodshed that devastated the Palestinian enclave and inflamed the Middle East.

Dubai's main share index <.DFMGI> fell 0.3%, hit by a 3.9% slide in utility firm Dubai Electricity and Water Authority <DEWAA.DU>.

However, Emaar Properties <EMAR.DU> added 0.8%, after Dubai's largest listed real estate firm said on Thursday it is in talks with "a few groups" in India including Adani Group to sell a stake of its Indian business.

Outside the Gulf, Egypt's blue-chip index <.EGX30> was up 0.7%, with Commercial International Bank <COMI.CA> rising 1.1%.

SAUDI ARABIA

<.TASI> rose 0.4% to 12,256

Abu Dhabi

<.FTFADGI> fell 0.1% to 9,506

Dubai

<.DFMGI> lost 0.3% to 5,236

QATAR

<.QSI> gained 0.4% to 10,472

EGYPT

<.EGX30> rose 1.8% to 29,605

BAHRAIN

<.BAX> was up 0.3% to 1,900

OMAN

<.MSX30> added 0.4% to 4,622

KUWAIT

<.BKP> finished flat at 8,010

(Reporting by Ateeq Shariff in Bengaluru; Editing by Vijay Kishore)