The seasonally adjusted trade deficit widened out to €9.71 billion in April from a slightly larger revised €8.39 billion in March. This was the first increase in the red ink since last December but only a 2-month high and still well below the €13.35 billion posted a year ago.

The monthly increase in the shortfall reflected a 1.0 percent fall in exports and a 1.4 percent rise in imports and was largely attributable to energy where the deficit rose by €1.4 billion to €6.8 billion. The trend in total exports is now broadly flat and in imports modestly down. The former now stand 8.2 percent higher on the year while imports, hit by lower energy prices, are up only 0.2 percent.

The merchandise trade balance measures the difference between imports and exports of goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness.

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets. Given the size of the French economy, the euro can be sensitive to changes in the trade balance. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.