The French national was killed by police on the scene.
Among French standout movers, Danone was the biggest faller on the CAC 40, down 2.2 percent after reporting first-quarter sales figures.
The attack overshadowed the final day of campaigning for the first round of the French election, which takes place on Sunday. It recalled two recent attacks on soldiers providing security at prominent locations around Paris: one at the Louvre museum in February and one at Orly airport last month. The attacker was known to ISIS as Abu Yussef, or "the Belgian", according to AFP. The country was rocked by an attack on Nice previous year, when 86 people were killed after a truck was driven into crowds on Bastille Day, and Paris in November 2015, when 130 were murdered in coordinated suicide bombings and mass shootings around the city.
Three leading presidential candidates, François Fillon, Emmanuel Macron and Le Pen, halted campaigning after the shooting, which came three days before French voters go to the polls.
"The perpetrator was flagged for radicalization", Thooris, a member of the Central Board of Le Pen's National Front party and head of the Association for Patriots of Jewish Faith, wrote on Facebook.
At a televised news conference Friday, Le Pen called for the closure of all Islamist mosques in France, the expulsion of hate preachers and the reinstatement of French borders.
He said: "She seems to be deliberately forgetting everything that has been done over five years to make people forget that she opposed everything, without ever proposing anything serious or credible".
Today, France is rife with anti-Semitic assaults, abuse, and terror attacks, much of it emanating from the same Muslim migrant communities targeted by Le Pen - and the source, therefore, of the notion that she, unlike her father, will be "good for the Jews". "The candidate of the Front National, like every drama, seeks to profit from and to control the situation to divide".
Fillon, meanwhile, has called Russian Federation sanctions "pointless" and is also accused of accepting $50,000 from a Lebanese businessman to facilitate a meeting between the man and Putin.More news: Chelsea fans marvel in Marcos Alonso's stunning free-kick at Bournemouth
"We must all be aware that our security forces do work that is particularly hard, that they are exposed, as one can see again this evening, and that they have the nation's full support", Hollande said. A state of emergency has been in place since 2015. We are at war.
Cazeneuve, however, questioned Fillon's position on security, saying that when he previously served as Prime Minister he had cut thousands of security force jobs.
Macron appealed to voters not to succumb to fear. "The choice that you have to make on Sunday must be a choice for the future". "Will have a big effect on presidential election!" he said.
He vowed that, if elected, he would within weeks of taking power create a task force to coordinate French intelligence efforts against the Islamic State group, which claimed responsibility for Thursday night's attack.
U.S. Treasury yields rose as investors waited on the results from the French election and as rising risk appetite boosted stocks, after yields fell earlier and broke below key technical resistance.
Is the shooting in Paris already helping the experienced center-right candidate? Le Pen has urged an end to French sanctions on Russian Federation issued over the country's annexation of Crimea, and has traveled to Moscow to meet with Putin.
French Interior Ministry spokesperson Pierre-Henry Brandet has said that French authorities were looking for a second suspect in connection with the shooting.
The attacker emerged from a auto and used an automatic weapon to shoot at officers outside a Marks & Spencer's department store at the center of the Champs-Elysees. The man "then ran away, managing to shoot and wound two other policemen". One officer was killed and two seriously wounded.