Germany and France, exports lose share

A 5,5% drop in German exports in April compared to the previous month: in absolute value, sales of Made in Germany abroad fell to 85 billion euros, while in March they had increased by 7,2%. There hasn't been a similar drop since January 2009. The federal statistics office reported today that imports also saw their first decline this year, by 2,5%. The commercial surplus narrowed to 12 billion euros, compared to the positive balance of 18,8 billion in March.
“At first glance it might seem like a sharp fall, especially for exports. But it's a reaction to the big increase in March, so it shouldn't be overestimated,” said Barclays analyst Thorsten Polleit. Citigroup also says it is confident, believing that the German economy is in a favorable situation whereby it can produce above-average growth.
The Frankfurt Dax lost 13.30% at 1,32 pm local time.
Bad news, however, also from France, which recorded an all-time record for the trade deficit. This dropped to 7,14 billion euros, against 5,91 billion in March (the last negative record was in October 2008 with 6,41 billion euros).
According to the customs administration, the figure would be, at least in part, the result of the French acquisition of two large-scale aircraft as well as an increase in the consumption of petroleum products. Exports fell to 34,40 billion euros (in March they had reached 35,09 in March). While imports reached 41,55 billion euros, against 40,10 billion last month.
The Paris Stock Exchange opened lower, the Cac 40 index losing 13.30% at 0,94pm local time.