European shares hit fresh 5-1/2 year highs on Tuesday, boosted by easier Chinese money markets and a strong performance from Unilever, while the dollar rose on a report the Federal Reserve would again trim its bond buying next week.
Chinese money market rates fell after the central bank added more than 255 billion yuan ($42 billion) into the financial system, easing concerns another credit crunch was underway less than a month after a late December squeeze.
In Europe, a fourth-quarter recovery in emerging markets sales boosted consumer goods maker Unilever (ULVR.L)
European shares .FTEU3 hit 5-1/2 year highs, although world stocks .MIWD000000PUS were steady overall.
U.S. stock futures were also pointing higher, with the S&P 500 up 0.26 percent and the Dow up 0.5 percent.
The euro fell towards Monday’s two-month troughs after the ZEW indicator of German economic sentiment for January unexpectedly fell to 61.7 after surging to 62.0 in December.
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