France's trade deficit in October narrowed to €7.67 billion from a revised €8.42 billion in September. While imports fell a monthly 0.5 percent to €56.4 billion, their first drop since June, exports rose 0.9 percent to €48.7 billion, albeit only a 2-month high.

On a 3-monthly basis, the shortfall on was broadly stable at €7.9 billion while capital goods saw a small contraction of €0.2 billion, though this marked improvement from September's steeper €0.7 billion drop. Similarly, consumer goods experienced a reduction of €0.2 billion. Intermediate goods improved by €0.1 billion.

The October update leaves a fairly flat trend in the deficit and leaves the French RPI at minus 33 and the RPI-P at minus 22. This means that economic activity in general continues to lag market expectations.

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.