Key takeaways:

• Economists believe the RBA will hike rates for the eighth consecutive month

• Oil and coal markets could face a shake up on the back of new controls 

Australian shares look set to open higher Monday morning in a week where RBA rate policy takes centre stage once again.

Economic Calendar and News

On Tuesday, the Reserve Bank of Australia will meet for the final time this year. The nation central bank is expected to lift the official cash rate by 25 basis points to 3.1%. 

However, last week below-forecast inflation data has left the door open to a potential pause'. Inflation came in at an annual pace of 6.9% in October, with consensus forecasts previously suggesting a reading of 7.6%. With October representing a decrease in inflation compared with September, policy makers may have a tricky dilemma to contend with.

Following tomorrow Board meeting, the RBA will not reconvene until February, 2023.

This week also sees fresh data detailing GDP for the September quarter. Economic growth is tipped to be 0.7% versus the preceding quarter, which would be a step down from the 0.9% recorded in the June quarter.Elsewhere, China will release data on services activity. The data will be telling amid concerns that the world second largest economy is in the midst of a slowdown. Figures from last week suggest rising COVID cases contributed to a contraction in manufacturing activity across November.This week we also have US producer prices, consumer sentiment data, as well as wholesale inventories.

Stocks on watch

The energy market is sure to be in focus over the coming days after a series of key developments. First, the European Union has banned all imports of Russian seaborne crude from Monday. At the same time, the G7 and its allies have imposed a price cap on Russian oil exports into global markets.

Over the weekend, OPEC+ met to review energy policy. In the lead-up to the meeting, there was some speculation the group might cut production further. However, the alliance decided to maintain existing production cuts. From November until the end of next year, the group will reduce oil production by 2 million barrels per day. That is equivalent to roughly 2% of global demand. 

In light of these developments, oil prices will be pivotal for a host of names. Some of the oil stocks to keep an eye on this week include Woodside Energy (ASX: WDS), Santos (ASX: STO), Beach Energy (ASX: BPT), Exxon (NYSE: XOM), Chevron (NYSE: CVX), and Marathon Oil (NYSE: MRO), among others.

Sticking with the energy theme, coal stocks may not have seen the end of volatility in 2022. It comes as state governments around the country clash with the federal government with regards to a mooted plan to introduce a cap on coal prices. 

States like Queensland, New South Wales, and Western Australia have pushed back against the proposal to varying degrees. With forward contracts already in place among various coal exporters, those firms would likely push for compensation. States and territories would lose commodity royalties if they imposed caps themselves, as the federal government is suggesting. A national cabinet meeting scheduled for Wednesday is expected to bring the issue to a head.

In the meantime, trading in stocks like Whitehaven Coal (ASX: WHC), New Hope Corporation (ASX: NHC), Stanmore Resources (ASX: SMR), and Yancoal (ASX: YAL) could attract heightened volumes. Coal has played a monumental role in delivering a better than expected position for the bottom line of the federal budget.Australia's leading wholesale distribution and marketing company begins the new trading week with a report on its half-year earnings. Metcash (ASX: MTS) is a key barometer for the broader consumer staples market. This is because the company results are likely to show the effects of inflation on Australian consumers, while also providing insights on how industry supply chains are holding up.In the US, earnings will continue to trickle through. Look out for results from GameStop (NYSE: GME), Campbell Soup (NYSE: CPB), Li Auto (NASDAQ: LI), Costco (NASDAQ: COST), as well as Lululemon Athletica (NASDAQ: LULU). 

GameStop will report its fiscal third-quarter earnings on Wednesday, US-time. The video game retailer is expected to report an improvement in earnings per share for the period. However, it remains to be seen whether a profit will be recorded. GameStop management recently made clear a desire to pivot towards a greater e-commerce and digital asset offering, while also cutting costs to achieve short-term profitability.

In the case of Lululemon, the athletic apparel business has beaten revenue expectations in nine of its last ten quarterly reports. The key areas of focus will be the presence of any inflationary challenges, new verticals in particular sports, as well as holiday sales trends, including the recent Black Friday and Cyber Monday events.