U.S. stock futures were mostly higher Monday , as investors braced for volatility and low volume in the holiday-shortened week.

Here at home, investors are digesting news that the federal and Ontario governments pledged $4 billion in emergency loans Saturday to support the Canadian subsidiaries of U.S. automakers Chrysler and General Motors.

In related news, Toyota Motor warned it expects to post its first-ever operating loss in the fiscal year through March.

Toyota slashed its fiscal year profit forecast Monday to barely breaking even at 50 billion yen (US$674 million) as Japan’s top automaker continues to be hammered by plunging global demand and a surging yen.

With no economic data scheduled for Monday and very little corporate data expected this week, some analysts expect investors to wade back into the market in search of bargains as the year comes to a close.

The Canadian dollar moved higher Monday at US82.71¢, up 0.94 of a cent.

In commodities news, crude-oil futures were little changed, up 1¢ at US$42.54 a barrel.

Overseas, Asian markets finished mixed. Hong Kong’s Hang Seng Index dropped 3.3 % to 14,874.61.

Tokyo bucked the downward trend, with its Nikkei 225 stock average rising 135.26 points, or 1.6 %, to 8,723.78 despite the latest bad news about the country’s exports.

European indexes fell, dragged down by auto makers. Key stock measures in Britain, Germany and France fell more than 1.5 % in early trade.

On Friday, the Toronto Stock Exchange fluctuated between positive and negative territory, finishing the day up 1.5% thanks to a late-day rally.

The S&P/TSX composite index gained 126.65 points to finish at 8,552. The benchmark index finished the week 36.6 points higher than last Friday’s close.

Junior companies on the Venture exchange slipped 1.4 points, or 0.2%, to 699.04.

Similar to market activity in Canada, American stock markets were little changed, even despite news that the American government would throw a US$13.4-billion lifeline to General Motors Corp. and Chrysler LLC.

The Dow Jones industrial average shed 25.88 points, or 0.3%, to finish at 8,579.11. For the week, the Dow is down 0.7%.

The Nasdaq composite index rose 11.95 points, or 0.8%, to end at 1,564.32—a gain of 1.5% for the week.

The S&P 500 index moved up 2.6 points, or 0.3%, to close at 887.88. It is 0.8% higher for the week.

IE