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 12.1 in September from 25.0 in August, missing expectations for a fall to 18.4.

"The weakening economic development in emerging markets dampens the economic outlook for Germany's export-oriented economy. While economic growth in the second quarter was largely driven by external demand, it is becoming less likely that exports will stimulate growth in the near future," the ZEW President Clemens Fuest.

Eurozone's ZEW economic sentiment index decreased to 33.3 in September from 47.6 in August.