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 1.0 in February from 10.2 in January, beating expectations for a fall to 0.0.

The assessment of the current situation in Germany declined by 7.4 points to 52.3 points.

"The looming slowdown of the world economy and the uncertain consequences of the falling oil price put a strain on the ZEW Indicator of Economic Sentiment. In view of these developments, the concern over an increased credit default risk has already caused stock and bond prices for many banks in Europe, Japan and the US to slump," head of the "International Finance and Financial Management" Research Department at ZEW, Sascha Steffen, said.

Eurozone's ZEW economic sentiment index dropped to 13.6 in February from 22.7 in January, beating expectations for a decline to 10.3.

The assessment of the current situation in the Eurozone fell by 0.5 points to -8.0 points.