Barring fears of Grexit and a bursting of China's equity bubble, stocks could rebound

US STOCKS lost ground last week as the spectre of a Greek exit from the euro and a Chinese bubble bursting sent fear rippling through global markets.

This week, US stocks are likely to stabilise as long as there are no more shocks from Greece, the US housing market or the technology sector.

So far, earnings season has been a classic case of beating low expectations. Of the 59 Standard & Poor's 500 constituents that have reported first-quarter profits so far, three quarters have topped the Wall Street peg, according to data from Thomson Reuters. Yet overall earnings are still set to decline by 2 per cent, according to the same analysis.