The trade deficit contracted to its narrowest level since December, coming it at minus 3.918 billion Euros, a marked comparison to the revised minus 6.347 (minus 6.576) billion in September.

While exports remained relatively stable in October at 51.730 billion compared to 51.967 billion in September, imports fell to 55.648 billion from 58.314 billion in September.

Weak demand has been a recurring theme this year for the French economy and while one month of data is certainly not a trend, the contraction in imports could reflect that. Should that continue in coming months it will be a cause of concern for the broader economy.

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.