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"shatter confidence" is a correct and usable phrase in written English.
You can use it to describe a situation in which someone has a feeling of self-assurance that is suddenly disrupted or destroyed. For example, "The sudden and unexpected dismissal of her supervisor shattered her confidence in her own abilities."
Exact(7)
Would the day's events shatter confidence in an already shaky market and lead to unacceptably volatile trading?
It is the first time he has suggested that the terrorist network Al Qaeda was seeking to "shatter confidence in the world economic system".
Mr Summers and Mr Geithner reckoned either step would shatter confidence in the financial system, and instead hit upon a series of "stress tests" to determine which banks had enough capital.
Its currency problems are in a category of their own.However, Vietnam serves as a timely reminder of how quickly inflation can get out of control, and the speed with which that can shatter confidence.
The CAJ, which has been highlighting state and security forces' abuses both during and after the Troubles for decades, also said that if the Conservative party forced the UK out of Europe's human rights regime it would shatter confidence within communities over politically sensitive policing reforms.
Brussels attacks shatter confidence in Europe's open borders.
Similar(49)
A victory at Fenway could boost Vazquez's shattered confidence.
When the credit crunch broke in summer, lending was pulled back and prices fell, shattering confidence.
"There is a shattered confidence we haven't seen in a long time," said Bruce Holley, senior partner at the firm.
First, however, the players' shattered confidence needed rebuilding – seeing this the next day, the waiters in their hotel offered to play them in a training game.
American Samoa had spent nearly two decades losing — and losing badly — so the hardest part for Rongen was dealing with the team's shattered confidence.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com