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 dropped to 41.9 in May from 53.3 in April, missing expectations for a decline to 49.0.

The ZEW President Clemens Fuest said that expectations were adjusted after the weak first quarter figures.

"Financial market experts have adjusted their optimistic expectations downward in May due to unexpectedly poor growth figures in the first quarter of 2015 and turmoil on the stock and bond markets. However, only a small number of survey participants actually expect a deterioration of the economic situation," Fuest noted.

Eurozone's ZEW economic sentiment index fell to 61.1 in May from 64.8 in April.