Bargain hunters have given a mild lift to North American markets Monday morning ahead of the U.S. Federal Reserve meeting on Tuesday. Traders are waiting for the Fed’s decision on intererst rates.

On Friday a dismal July payrolls report in the U.S. helped to wipe out the main Toronto index’s gains for the year and sent New York indexes to fresh 2004 lows

Analysts widely expect the U.S. Federal Reserve will hike rates Tuesday despite the jobs report.

At midday, Toronto’s S&P/TSX composite index is up 9.5 points at 8,186.18. The industrial sector was the biggest decliner, largely because of a slide in the shares of CP Ships.

Crude oil prices continue to climb today. The price of light sweet crude for September delivery was up US15¢to US$44.10 US a barrel, after hitting a record of US$44.73 a barrel on Friday.

Toronto energy sector gainers included Canadian Natural Resources, up 60¢ to $41.55, and Talisman Energy, up 65¢ to $29.55.

Shares in Husky Energy Inc. climbed 15¢ to $27.18 after the company announced its drilling program for the $2.35-billion White Rose project off the coast of Newfoundland and Labrador is on schedule for possible production by late next year.

Active stocks on the TSX included Nortel Networks, two¢ lower at $4.69, Bombardier was up five¢ to $3.05 and Abitibi Consolidated lost 31¢ to $7.84.

The company’s stock fell $3.81 to $17.94 after the firm restated its profits downward for the last two years and for the 2004 first quarter by up to US$40 million.

The junior TSX Venture Exchange is up 0.12 point at 1,496.94.

There was some good news on Canada’s housing front. Canada Mortgage and Housing said this year will be the strongest year since 1987 for housing starts. CMHC said in its third-quarter outlook that starts are expected to hit 225,700 units, up from 218,426 in 2003.

On Wall Street, New York’s Dow industrial average is ahead 28.98 points at 9,844.31. The tech-heavy Nasdaq composite index has advanced 5.81 points at 1,782.7, while the S&P 500 was ahead 3.86 points to 1,067.83.