The German ZEW survey of investor confidence has slumped to 33.1 in May from 43.2 in April and missed consensus of 41.
However, the current situation print rose to 62.1 from 59.5 and exceeded forecasts of 60.5.
Sentiment for the eurozone plunged to 55.2 from 61.2 and fell short of forecasts of 63.5.
The fall in the outlook for Germany "should be seen against the backdrop of a strong economic development in the first quarter," says ZEW President Clemens Fuest. "Already, there are indications that Germany will not be able to maintain this fast pace of growth," although the underlying trend should stay positive.
The euro takes a dive and is -0.1% at $1.3745, while the DAX is +0.5%. (PR)