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 declined to 29.7 in July from 31.5 in June, missing expectations for a decline to 30.0.

"Neither the difficulties in dealing with the Greek sovereign debt crisis nor the turmoil on Chinese financial markets seem to impress the financial market experts strongly. Despite the slight decline of the indicator, the overall economic outlook for Germany remains positive," the ZEW President Clemens Fuest.

Eurozone's ZEW economic sentiment index dropped to 42.7 in July from 53.7 in June.