The seasonally adjusted trade balance was in a €5.24 billion deficit in February, down sharply from a slightly smaller revised €7.21 billion in January.

The marked improvement reflected a 4.5 percent monthly jump in exports to an 8-month high. This easily more than offset a 0.4 percent rise in imports which failed to reverse January's 1.2 percent decline. The rise in the former puts the 3-monthly change at 0.5 percent while its import counterpart now stands at minus 2.6 percent. As such, the trend in the trade balance remains in the right direction. Even so, exports are still 2.6 percent below their level a year ago and imports are down fully 10.7 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.