By Ateeq Shariff

Aug 27 (Reuters) - Stock markets in the Gulf ended mixed

on Wednesday as concerns persisted about the U.S. Federal

Reserve's independence following President Donald Trump's

attempt to dismiss Fed Governor Lisa Cook.

Trump said he was removing her over alleged improprieties in

obtaining mortgage loans, a step that could test the boundaries

of presidential power over the U.S. Fed.

Cook said Trump has no authority to fire her from the

central bank, and she will not resign.

Saudi Arabia's benchmark index dropped 0.6%, weighed

down by a 1% fall in Al Rajhi Bank and 2.8% decline in

the country's biggest lender Saudi National Bank.

In Qatar, the index retreated 0.6%, hit by a 1.6%

fall in Qatar Islamic Bank.

Oil prices - a catalyst for the Gulf's financial markets -

steadied, after falling in the previous session, as investors

watched for developments in the Ukraine war and weighed an

industry report showing a drop in U.S. inventories and new U.S.

tariffs on India.

Dubai's main share index added 0.3%, helped by a 1%

gain in blue-chip developer Emaar Properties.

In Abu Dhabi, the index was up 0.2%.

The focus shifts to the Personal Consumption Expenditures

Price Index, the Fed's preferred inflation gauge, due on Friday,

for clues on the interest rate path after dovish remarks from

Powell at Jackson Hole symposium last week.

Markets have priced in an 87% chance of a quarter-point rate

cut at the Fed's September 17 policy meeting, according to CME

FedWatch Tool.

The Fed's stance holds implications for Gulf economies,

where most currencies are pegged to the U.S. dollar, making it

an anchor for regional monetary stability.

Outside the Gulf, Egypt's blue-chip index advanced

0.9%, led by a 4.1% jump in tobacco monopoly Eastern Company ( EML )

.

Egypt's central bank is likely to cut its key interest rates

by 100 basis points on Thursday to support growth as inflation

cools, a Reuters poll showed.

SAUDI ARABIA fell 0.6% to 10,808

Abu Dhabi rose 0.1% to 10,182

Dubai gained 0.4% to 6,127

QATAR dropped 0.6% to 11,339

EGYPT up 0.9% to 35,676

BAHRAIN was down 0.2% to 1,926

OMAN added 0.4% to 5,034

KUWAIT eased 0.3% to 9,153