The ZEW Center for European Economic Research released its economic sentiment index for Germany and the Eurozone on Tuesday. Germany's ZEW economic sentiment index increased to 53.0 in February from 48.4 in January, but missing expectations for a rise to 56.2. That was the highest reading since February 2014.

The increase was driven by quantitative easing by the European Central Bank and the better-than-expected economic data from the Eurozone.

The ZEW President Clemens Fuest said that "quantitative easing by the European Central Bank and unexpectedly high economic growth in the fourth quarter of 2014" had a positive effect on the sentiment. He added that the escalation of the Ukraine crisis and new debt deal talks between the European Union and Greece are dampening expectations.

Eurozone's ZEW economic sentiment index rose to 52.7 in February from 45.5 in January, beating expectations for a gain to 51.3.