German Ifo Institute released its business confidence figures for Germany on Tuesday. German business confidence index declines to 105.7 in February from 107.3 in January, missing expectations for a fall to 106.7.

"The majority of companies were pessimistic about their business outlook for the first time in over six months. Assessments of the current business situation, by contrast, were slightly better than last month. German businesses expressed growing concern, especially in manufacturing," Ifo President Hans-Werner Sinn said.

The Ifo current conditions index increased to 112.9 from 112.5. Analysts had expected the index to decline to 112.0.

The Ifo expectations index dropped to 98.8 from 102.3, missing expectations for a decrease to 101.6. January's figure was revised down from 102.4.