LONDON (TheDeal) -- European markets look poised to end a nine-session winning streak on Tuesday, slipping into the red as investors turn their attention to the second-quarter reporting season.
The big corporate news overnight came out of Tokyo, where Toshiba (TOSBF) President and CEO Hisao Tanaka stood down after the company said it had systematically overstated its earnings and will have to reduce reported operating profits by at least ¥152 billion ($1.2 billion). Tanaka and his predecessor Norio Sasaki, the company's vice chairman, resigned on Tuesday after it emerged they had encouraged the manipulation of results for more than six years, in order to meet financial targets.
The scandal is a further blow to the image of Japanese corporate governance, four years after another storied name, Olympus (OCPNY), was revealed to have hidden $1.7 billion over the course of 13 years. Toshiba shares leapt 6.1% as investors welcomed the end of the investigation, which began in May, into the accounting cover up.
Back in Europe, Greece continued its painful path to some sort of stability when the government in Athens submitted legislation to bring its banking regulations in line with European laws passed after the 2008 financial crisis. The Greek Prime Minister has until the end of Wednesday to pass the laws and clear the way for talks with international lenders about a bailout package.
Greek banks opened for the first time in weeks on Monday, and there were rumors that the stock market would also reopen, though it remained closed at the time of writing.
In London, the FTSE 100 led Europe's major markets lower, trading down 0.27% at 6770.82. Frankfurt's DAX slid 0.07% to 11726.92, while in Paris, the CAC 40 was down 0.15% at 5134.96.
EasyJet (ESYJY) was among the biggest fallers in the U.K. market, dipping 1.69%, after Commerzbank analysts said slowing demand would hurt the budget carrier and its competitors. Centrica (CPYYY), Britain's biggest utility, also fell, down 1.73%, after an unscheduled outage at one of its plants.
Britain's Financial Times found itself on the front of most financial pages, except its own, following a Bloomberg report that owner Pearson (PSO) was looking for a buyer for its iconic pink business daily. Pearson shares were unmoved, up less than 0.4%.
In France, spirits maker Rémy Cointreau (REMYF) fell 2.32% in early trading, after reporting a 9% fall in currency-adjusted sales over the first quarter, even though the recent sharp dip in the euro meant its euro-earnings over the period rose 3.9%.
Without any strong direction being generated in Europe, the fate of the markets' winning run could be decided by corporate results out of the U.S. All eyes will be on Apple (AAPL - Get Report) and Microsoft (MSFT - Get Report), both of which are due to release quarterly results on Tuesday.
Asia Pacific markets were awash with green on Tuesday, as all of the major indices closed higher. The Nikkei 225 led the pack higher, rising 0.93% to a four-week high, on expectations of strong quarterly results from Japanese companies. Australia's S&P 200 closed 0.35% higher, adding to a five-day run that has added just over 4.2% to the index.
Chinese stock markets also added to their recent good run with Hong Kong's Hang Seng and the Shanghai Composite trading late into their afternoon at just over 0.6% higher. Analysts were wary of the gains, claiming that government cash was still flowing into the markets and propping up companies' valuations.