A suspect on a terrorist watch list was being hunted Wednesday after three people were killed and more than a dozen others wounded in a shooting near a Christmas market in the French city of Strasbourg.

Police had raided the suspect's home hours before Tuesday's attack as part of a burglary probe.

Cultural sites and sports centers were closed on Wednesday as 350 police officers were deployed in the manhunt.

The shooting took place shortly before 8 p.m. local time (2 p.m. ET) near a Christmas market that attracts millions of tourists every year. Strasbourg considers itself the "capital of Christmas."

The suspect fled the scene and exchanged shots with police between 10 p.m. and 11 p.m. local time, according to Interior Minister Christophe Castaner. He said the suspect has a criminal record in France and Germany.

Strasbourg is located on France's border with Germany. Bing Maps

A prosecutor had earlier said that officers were searching for the suspect in connection with alleged criminal association with a terrorist group and attempted assassination.

Authorities believe a handgun was used in the attack. Of the at least 12 wounded, six have serious injuries, police said.

Strasbourg Mayor Roland Ries said those killed were adults and included a tourist from Thailand.

He told BFMTV that "life must go on" and that the city wouldn't cede to a "terrorist who is trying to disrupt our way of life."

A State Department spokesperson said the United States condemns "in the strongest terms this horrific attack" and that "our thoughts are with the family and friends of those affected."