France's CAC 40 Index shares in retreat over police raids in Paris

European stocks were little changed as investors assessed value after the strongest rally in six weeks, but France’s CAC 40 Index retreated after a police gun battle with suspects linked to the Paris terror attack.

Air Liquide slid the most on the French equity gauge, falling 7.4% after agreeing to purchase US rival Airgas.

The CAC 40, which jumped the most in six weeks yesterday, retreated 0.6% at the close of trading in Paris after the shootout left at least two people dead.

L’Oreal slid 1.7% and LVMH lost 1.1% in France. The Stoxx Europe 600 Index fell 0.1% to 379.33, paring earlier losses of as much as 0.8%. .

The Stoxx 600 stalled after a rally in energy producers helped push it higher in the two trading days following the attacks in Paris.

The gauge closed yesterday 12% higher than its September low, boosted by optimism the ECB will add to stimulus measures.

“You’ve had a good run in the market so there’s a short- term profit-taking after a really strong day,” said Patrick Spencer, equities vice chairman at Robert W. Baird in London.

“On top of that, the strong US inflation numbers put further evidence that there’s going to be a rate hike and that’s a concern of European equities as it makes borrowing more expensive for companies.”

Investors were also awaiting minutes from the Federal Reserve due after the close of European trading to gauge the likelihood of an increase in borrowing costs next month.

US inflation data on Tuesday bolstered the case for higher interest rates.

European stocks will be under pressure in the near term because it’s unlikely that equities will do well if the Fed raises rates and financial conditions tighten, Deutsche Bank’s Sebastian Raedler said.