Sombre moods hits eastern French city of Strasbourg after three people were killed and 12 others wounded in a shooting.
The suspect, who is known to security services, escaped after exchanging fire with soldiers and armed police on Tuesday. He is believed to be injured.
The shooting happened close to a popular Christmas market near one of the central squares, Place Kléber.
France’s counter terrorism prosecutor has opened an investigation.However, the motive for the incident remains unclear.
“He fought twice with our security forces,” French Interior Minister Christophe Castaner said.
Confirming that three people had died, Mr Castaner said that border controls had been strengthened and security at all Christmas markets would be stepped up, with 350 security agents hunting for the gunman.
He added that France had raised its security alert level to “emergency attack”.
Six of those reportedly injured on Tuesday were said to be in a serious condition, while six others suffered light injuries, police said.
Police added that the 29-year-old suspect was born in Strasbourg and was already known to the security services as a possible terrorist threat.
According to France’s BFM TV the man had fled his flat in the Neudorf district of the city on Tuesday morning as it was being searched by police in connection with a robbery.
Residents in Neudorf were urged to stay indoors following unconfirmed reports that the suspect had been tracked down and cornered by police in the area.
The European Parliament, which is nearby, was placed on lockdown. The parliament’s president, Antonio Tajani, tweeted to say it would “not be intimidated by terrorist or criminal attacks”.
French President Emmanuel Macron, who had attended a crisis meeting with cabinet officials in Paris, later tweeted that the “solidarity of the entire nation” was with Strasbourg, the victims and their families.
The attack unfolded at around 20:00 local time (19:00 GMT) close to Strasbourg’s famed Christmas market, which attracts thousands of visitors at this time of year.
The mayor of Strasbourg, Roland Ries, later tweeted that the Christmas market would be closed on Wednesday following events. He added that flags would be lowered to half-mast at the local Town Hall, where people could to pay their respects in a book of condolences.