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U.S. stock index futures rose on Tuesday as Wall Street looked set to follow Asian markets higher, despite further weak Chinese factory data.
Both the Chinese official and the Caixin/Markit purchasing managers' indexes (PMI) showed that manufacturing activity decreased once again in November.
Overnight, the International Monetary Fund officially stated that the yuan would enter its Special Drawing Rights (SDR) basket in October 1, 2016, making it a reserve currency alongside the U.S. dollar, euro, pound sterling and yen. The yuan will make up 10.92 percent of the basket.
European stocks traded mixed after euro zone average unemployment for October was reported at 10.7 percent, down from 10.8 percent in September and below expectations.
In addition, euro zone, manufacturing PMI for November was confirmed at 52.8. However, the U.K.'s manufacturing PMI came in weaker than expected, at 52.7, showing declining growth in the sector.
Investors were focused on two crucial data due later in the week, before the Federal Open Market Committee meets in mid-December. On Thursday, the European Central Bank (ECB) will announce its monetary policy decision and on Friday, the U.S. November non-farm payrolls are out.
The ECB is expected to expand its quantitative easing program, while the Federal Reserve is seen raising interest rates, in what would be an historic divergence in policy by two major central banks.
The dollar index, which tracks the greenback against a basket of other currencies, declined to below 100 on Tuesday, as the upturn in risk sentiment made "safe haven" bets like the dollar less appealing.
The data focus in the U.S. on Tuesday will be the ISM index for November, which is seen showing modest increases from November's low reading of 50.1. There will also be vehicle sales for November and construction spending for October.
— By CNBC's Katy Barnato. Follow her on Twitter .