German Ifo Institute released its business confidence figures for Germany on Tuesday. German business confidence index rose to 106.7 in March from 105.7 in February, exceeding expectations for an increase to 106.0.

"After weakening for three consecutive months, sentiment among German businesses brightened slightly in March," Ifo President Hans-Werner Sinn said, adding that German businesses were less sceptical than in February.

The Ifo current conditions index increased to 113.8 from 112.9. Analysts had expected the index to decline to 112.6.

The Ifo expectations index climbed to 100.0 from 98.9, missing expectations for a rise to 99.5. February's figure was revised up from 98.8.