Local shares look set to open on a positive note after fresh US economic data showed a moderation in wages growth, prompting lower expectations for inflation.

Economic Calendar and News

The week ahead will draw attention to the battle to quash inflation in the US, with the latest figures due to be published on Thursday, US-time.With consumer prices showing signs of easing over recent months, the upcoming data release will either confirm that trend, or potentially add some complexities to the mix. Core inflation is expected to decrease from 6% to around 5.7% year-over-year, while headline inflation is tipped to drop from an annual reading of 7.1% to 6.5%.Other data that will land this week includes export and import prices, oil holdings, grain stocks, jobless claims, as well as consumer sentiment. There will also be a number of speeches from key members of the Federal Reserve, including none other than Chair Jerome Powell. Observers will be listening for clues as to how the world most important central bank will manage the transition from its monetary tightening program.Australian inflation is also on the radar. The latest monthly CPI indicator is scheduled for release on Wednesday, with forecasts suggesting the number may increase from 6.9% to 7.3% following an unexpected decrease last time around.There will also be fresh figures for building permits, the Balance of Trade, which includes imports and exports, home loan activity, and retail sales for November. 

Retail sales will be the most pivotal data-point, with the figures providing insights on the strength of the Australian consumer. According to consensus numbers, economists believe retail sales turned around from a contraction of 0.2% in October, to positive growth in November.

Stocks on watch

Gold stocks are likely to enter the week full of momentum after the price of the precious metal rallied on Friday evening. Setting a fresh six-month high, the price of gold surged as high as US$1,869 per ounce. That could provide the impetus for a host of ASX-listed gold producers to continue their recent form, including the likes of Evolution Mining (ASX: EVN), Northern Star Resources (ASX: NST), Newcrest Mining (ASX: NCM), Silver Lake Resources (ASX: SLR), and Gold Road Resources (ASX: GOR).

Elsewhere, with a thawing in relations between Australia and China, and the latter also abandoning its COVID-zero policy, a number of stocks subject to trade relations might be in focus. That comes amid signs China has already lifted the ban on Australian coal imports, with one Chinese business placing an order to import Australian coal.

Aside from coal names like Whitehaven (ASX: WHC), New Hope (ASX: NHC), and Yancoal (ASX: YAL), this development could bring attention to other exports such as wine and grain crops, which have also been the subject of trade sanctions in recent times. Although no firm signs of relief have emerged as yet, some optimism has swept over the trade industry, where names like Treasury Wine Estates (ASX: TWE) and Graincorp (ASX: GNC) are major players, among others. China reopening may also redirect the spotlight back to the Australian tourism and education industries, which have been shut off from their largest market. Stocks previously affected by pandemic restrictions and trade angst include Flight Centre (ASX: FLT), Star Entertainment (ASX: SGR), and G8 Education (ASX: GEM), among others. University surveys are showing foreign student applications have surpassed pre-pandemic levels.Importantly, the US corporate earnings season kicks off at the end of the week. Wells Fargo (NYSE: WFC), Bank of America (NYSE: BAC), and JPMorgan Chase (NYSE: JPM) are just some of the names that will hand down earnings, with the bank sector currently seeing mixed forces at play. Rising interest rates are traditionally a net positive for the banks, but concerns about the economic outlook and weak activity across capital markets threaten to pose a challenge for the sector.Another stock that might continue to attract attention over the coming days is pharmaceutical giant Pfizer (NYSE: PFE). Reports emerged the company is in discussion with Chinese authorities with regards to negotiating a licence that would allow domestic Chinese pharmaceutical firms to manufacture and distribute a generic version of its COVID antiviral drug, Paxlovid.