U.S. stock-market futures were flat Monday as investors awaited the outcome of this week’s Federal Reserve meeting and moves to prop up the ailing auto sector.

U.S. stocks Friday erased early losses to close higher after the Bush administration said it would step in to prevent a failure of U.S. auto makers amid fears that more job losses would deepen the recession.

Detroit’s Big Three will continue to be closely watched Monday as investors await details on how the Bush administration plans to divert funds allocated for the Troubled Asset Relief Program to support the companies.

On Friday, the Canadian federal government and Ontario reached a deal to offer proportional funds to Canada’s auto industry if a proposed US$14 billion aid package is approved in Washington.

Meanwhile, the scope of losses on investments managed by Wall Street investment manager Bernard Madoff widened. Banco Santander, BNP Paribas, Royal Bank of Scotland Group and hedge fund Man Group PLC all revealed significant exposures to what prosecutors say was a US$50 billion scheme to defraud investors.

Here at home, Finance Minister Jim Flaherty will meet with members of the Opposition Liberals to field ideas on how to stimulate the economy in the run-up to next month’s federal budget.

The Canadian dollar opened at US81.10¢, up 1.18 cents from Friday’s close of 79.92.

In commodities news, light, sweet crude rose $2.18 to US$48.46 in electronic premarket trading on the New York Mercantile Exchange.

Overseas, markets rose on the hope that a relief package for auto makers will proceed.

Japan’s Nikkei 225 rose 5.3%.

In Europe, the UK’s FTSE 100 Index gained 0.8% to 4,312.45. Germany’s DAX index was up 1.8% at 4,749.33. France’s CAC-40 rose 1.2% to 3,250.94.

On Friday, the Toronto Stock Exchange managed a recovery into positive territory that helped it finish the week nearly 5% higher than a week ago.

The S&P/TSX composite index gained 123.55 points on Friday, or 1.47%, to finish at 8,515.45.

The S&P/TSX Venture composite index gained 5.1 points, or 0.7% to finish at 718.54.

In New York, the Dow Jones industrial average moved higher by 42.45 points, or 0.75%, to finish at 8,629.68. It ended the week down 0.1% from last Friday’s close.

The Nasdaq composite index gained 32.84 points, or 2.2%, to end at 1,540.72. Throughout the week the index gained 2.1%.

The S&P 500 index increased by 6.14 points, or 0.7%, to close at 879.73. It rose 0.4% throughout the week.

IE