Global bank HSBC said Wednesday its third-quarter net profit soared on a large accounting gain but underlying earnings sank as the group warned of "significant headwinds" for the sector.

Profits after taxation rallied 66 percent to $5.22 billion (3.79 billion euros) in the three months to September, reflecting a revaluation of its debt, compared with net profit of $3.15 billion in the same period 2010.

European stocks closed sharply lower Wednesday as any early optimism that the resignation of Italian Prime Minister Silvio Berlusconi would calm the markets disappeared in a wave of near panic.

Dealers said investors first thought Berlusconi's decision would clear the decks but as it became clearer that Italy faces possibly months of political uncertainty, they decided on safety first and put their money elsewhere.

Greece's outgoing Prime Minister George Papandreou said Wednesday that an agreement had been reached with the opposition on the creation of an interim government that will secure the country's new debt deal.

Speaking in a live televised evening address before a meeting with Greece's president, where he was expected to formally resign, Papandreou wished the next prime minister well — but gave no indication of who it would be.

Central Bank Governor Riyad Salameh said on Wednesday that Lebanon’s economy was affected by the turmoil in neighboring Syria.

“The Lebanese banking sector has 6 banks in Syria and they’re affected because of the deteriorating … amount of transactions there,” Salameh said in an interview with Russia Today news television channel.

Anti-Wall Street protesters have a new way to pass the time: an "Occupy" coloring book complete with songs and a visit from Robin Hood.

The "grown-up coloring book novel" was released last week by Really Big Coloring Books, a Missouri-based publisher that recently made headlines with a controversial coloring book about the September 11, 2001 attacks.

Canada's plan to balance its budget will be delayed by a year to fiscal 2015-2016 due to slow global economic growth, the finance department announced Tuesday following a dismal jobs report.

The government of the G7 country had pledged during an election campaign in May to return to a budgetary surplus by fiscal 2014-2015, but is now aiming for a small surplus of $0.6 billion the following year, said an economic update.

The EU is readying a freeze on European Investment Bank credits to Syria as it mulls further sanctions on President Bashar al-Assad's regime after months of bloodshed, diplomats said Tuesday.

A diplomatic source said the EIB would suspend new credits and freeze disbursement of outstanding credits while also stopping all technical assistance, such as audits and feasibility studies.

French bank Societe Generale said on Tuesday it was scrapping its 2011 dividend and making a "significant" cut to bonuses after a tough third quarter owing to a Greek debt write-down.

The market welcomed this clearing of the decks and SocGen shares surged 7.26 percent to close 18.77 Euros, far outpacing Paris's benchmark CAC 40 index which gained 1.28 percent.

The economic situation in Italy is very worrisome as the country faces "very significant" market pressure, the EU's economic affairs chief said Tuesday.

"The economic and financial situation of Italy is very worrying," EU Economic and Monetary Affairs Commissioner Olli Rehn told a news conference after a meeting of European Union finance ministers.

Prime Minister Francois Fillon announced plans on Monday to save 100 billion euros to eliminate France's budget deficit by 2016, including 500 million Euros in extra state budget savings next year.

"The time has come to adjust France's efforts. With the president, we have only one goal: to protect the French people from the serious difficulties that many European countries are now facing," Fillon said during a press conference.