The Guardian reported that the ''US and Canadian military are continuing to search by sea and land amid hostile weather conditions in a scramble to recover portions of three flying objects shot down over North American airspace in the past week.''

''The Democratic majority leader of the US Senate, Chuck Schumer, told ABC’s This Week on Sunday that he had been briefed by the White House and that officials were now convinced that all three of the flying objects brought down by air-to-air missiles this week were balloons. He put the finger of blame firmly on China.''

Related Headlines

US Representative Elissa Slotkin: Military has extremely close eye on object above Lake Huron;

• Update: Michigan Congressman Jack Bergman says US military has "decommissioned" an object over Lake Huron

Michael  McCaul: Suspected Chinese spy balloon "did a lot of damage".

Canada's PM Trudeau: Unidentified object shot down over Northern Canada by Canadian and US aircraft.

Market implications

The markets are taking their geopolitical risks in their stride, focusing instead on sentiment surrounding the Federal Reserve and this week's US data including Consumer Price Index and Retail Sales. 

On Friday, the US Dollar firmed and global equity markets dropped on Friday as rising interest rates and a slew of hawkish central bank officials who are concerned about persistent inflation risks.