March 8 Reuters Most major Gulf stock markets closed lower on Wednesday after hawkish comments by U.S. Federal Reserve Chair Jerome Powell on the likelihood of higher interest rates rattled investors in the region.

The Fed will likely need to raise interest rates more than previously expected in response to recent strong data, Powell said on the first day of his semiannual, twoday monetary policy testimony before U.S. lawmakers on Tuesday.

Powell39;s hawkish stance and lower growth expectations from China affected sentiment in the GCC, said Daniel Takieddine, CEO MENA at BDSwiss.

Monetary policy in the sixmember Gulf Cooperation Council GCC is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar, directly exposing them to any monetary tightening there.

Saudi Arabia39;s benchmark index dropped 0.6, snapping a sixday rally.

The index was weighed down by real estate and financial stocks, with luxury real estate developer Retal Urban Development decreasing 1.3 and Al Rajhi Bank shedding more than 1.

In Abu Dhabi, the index extended its loss from the previous session, pressured by a 0.6 decline in conglomerate International Holding Co IHC.

IHC39;s unit Alpha Dhabi Holding was down 2.1.

Dubai39;s main share index also extended declines from the previous session to close 0.1 lower, with toll operator Salik sliding 2.1. and Dubai Electricity and Water Authority retreating 0.8.

The Qatari benchmark index, however, bucked…