Key takeaways:

• The RBA is widely expected to lift interest rates by 25 basis points this week

• The first week of the ASX earnings season is set to be headlined by Macquarie Group, AGL, Suncorp, and Transurban

The start of another ASX earnings season is here, and with an RBA decision due tomorrow, the local market strong start to the year will be put under the microscope.

Economic Calendar and News

The Reserve Bank of Australia takes centre stage this week, and its Board meeting tomorrow could go some way towards determining what unfolds across the ASX this week.A majority of economists surveyed believe the nation central bank will lift interest rates by another quarter of a percent tomorrow, which would take the official cash rate to 3.35%. If, however, the RBA opts to hike rates above the widely expected mark of 25 basis points, that could put pressure on local equities.

Based on futures markets, the likelihood of a supersized rate hike would appear to be small, especially in the shadow of the US Federal Reserve winding back the magnitude of its own rate hikes. However, in some quarters the prospect remains live', with CBA putting the chances of a 40 basis point hike at one in four.

Commentary by Fed Chair Jerome Powell repeatedly referenced disinflation, and while Australia inflation numbers are still very high - particularly, core inflation - an RBA move out of lockstep with its peers would almost certainly shock onlookers.

At the end of the week, the RBA will issue its Statement on Monetary Policy, which is a quarterly assessment of current economic conditions, both domestic and international, along with the outlook for Australian inflation and output growth.Apart from this week interest rate decision, the Australian economic calendar includes quarterly retail trade, the monthly inflation gauge by the Melbourne Institute, building permits, and the Balance of Trade.In the US, Federal Reserve Chairman Jerome Powell will make another public appearance, with the key figurehead set to speak at the Economic Club of Washington D.C. 

Powell dovish' comments last week may be probed further, with some economists believing he may reiterate the progress being made in hiking rates to drive down inflation, while still maintaining an incredibly resilient jobs market.

Other data coming up includes fresh figures on international trade, wholesale trade, and consumer sentiment.

Stocks on watch

A cautious earnings season kicks off this week, with ASX companies set to hand down results over the coming weeks. While the second half of last year is still likely to show resilient consumer spending and growth in key areas of the economy, one of the more pivotal matters will be the outlook moving forward over the coming months.

The first batch of high-profile earnings will come Tuesday from the likes of Centuria Capital (ASX: CNI), Macquarie Group (ASX: MQG), and Transurban (ASX: TCL).

Of the trio, Macquarie third-quarter trading update, which will also be the first from the bank sector, may well act as a barometer for the rest of its peers. The key area of focus will be net interest margins, with banks currently leveraged to rising interest rates, albeit in a highly competitive environment. On that front, lending growth will indicate the extent of borrowers' mindsets in the current marketplace.

On Wednesday, look out for results from BWP Trust (ASX: BWP), Suncorp (ASX: SUN), and Amcor (ASX: AMC).

Suncorp recently updated the market to advise shareholders that it is facing thousands of insurance claims arising from the floods in Auckland, New Zealand. Expect further information on that, while the diversified financials company also continues to inch towards selling its banking division to ANZ.

One of the key watch-points for global packaging company Amcor will be the role that inflationary challenges may have had on its margins and growth. Previously, the company successfully passed on price rises attributable to higher material costs in the wake of elevated inflation.

By Thursday We'll also have an insight as to what is happening in other areas of the market. Results will come from names such as AGL (ASX: AGL), Charter Hall Long WALE (ASX: CLW), Mirvac (ASX: MGR), and Megaport (ASX: MP1).

AGL provided guidance for underlying EBITDA between $1.25 billion and $1.45 billion across FY23, so observers will be looking closely to see whether the company remains on track at the midpoint of the year. A recent focal point across the company most recent earnings results has been its progress towards decarbonisation goals.

Megaport recently issued its preliminary results ahead of this week formal release, and shareholders were none too pleased about slowing growth in recurring revenue, and weaker cash flow. Port and Megaport Virtual Edge (MVE) additions also fell short of estimates, which could represent a challenge to the company guidance, so investors may be keeping a close eye on outlook commentary.

Weekend reports suggest the ASX largest gold miner is in the sights of an overseas suitor. Newcrest Mining (ASX: NCM) is understood to have received an early-stage approach regarding a takeover of the business, which enters the new trading week with a market cap of $20 billion. 

The company is believed to be engaging with a range of advisers to assess the proposal, with confirmation coming first thing Monday that the suitor is Newmont Corporation. Under the conditional and non-binding indicative proposal, Newcrest shareholders would be entitled to receive 0.38 shares in Newmont for each Newcrest share they own. Newcrest is no stranger to takeover talks, with the company nearly acquired by both Goldcorp and Barrick several years ago.

Overseas, US earnings haven't shifted from the spotlight, especially after Apple (NASDAQ: AAPL) reported a 5% slowdown in revenue last week, its first downturn in approximately three and a half years. It was also Apple first profit miss' in seven years. Nonetheless, that was mostly a case of the company supply chain being unable to fulfil demand, thanks in no small part to production issues out of China arising from COVID-related disruption and worker unrest at a key manufacturing plant.The week ahead will see results from US-listed stocks including BP (NYSE: BP), Uber (NYSE: UBER), Walt Disney (NYSE: DIS), PepsiCo (NASDAQ: PEP), and PayPal (NASDAQ: PYPL).