Key takeaways:

• Fresh inflation data, in Australia and the US, will shape the course of monetary policy when the Federal Reserve and RBA both meet in the next fortnight

• A new round of US earnings reports will span the breadth of the market

The ASX is just a fraction off its all-time high, and local shares look set to open on a positive note following Wall Street rally last Friday.

Economic Calendar and News

This week big-ticket item on the local economic calendar is the release of Australian inflation data for the fourth quarter of 2022. Due Wednesday, the data will play a critical role in setting the scene for the upcoming Reserve Bank of Australia meeting on February 7.

Forecasts suggest annual inflation increased to 7.5% on a headline basis in the December quarter, compared with 7.3% in the September quarter. The core' reading, referred to locally as trimmed-mean inflation, is tipped to come in at 6.4%, as opposed to 6.1% in the preceding quarter.

Economists believe inflation may have peaked in the final quarter of last year, so the data will serve as a lagging indicator as far as what to expect moving forward.

Nonetheless, the RBA will examine the numbers closely as part of its review to determine whether a ninth consecutive rate hike is needed to bring inflation under control.

Should the inflation figures come in below expectations, it may give the RBA some comfort to pause its rate hike program. On the other hand, a hot' inflation reading may keep the pressure on the central bank to maintain its commitment to do whatever it takes to tame soaring consumer prices.

As it stands, however, futures suggest the probability of another rate hike at the RBA next policy meeting is above 80%, with the official cash rate currently at 3.1%.

Overseas, the US economic calendar is packed with news and developments.On Thursday US-time, the Bureau of Economic Analysis will publish an advance estimate for fourth-quarter GDP. A survey of leading economists suggests the US economy expanded during the last three months of the year by 2.5%. 

That follows growth of 3.2% in the third quarter, and two periods of contraction before that. It is likely that a slowdown in consumer spending contributed to a moderation in GDP growth.

At the end of the week, look out for the Personal Consumption Expenditures (PCE) Price Index for December. As the Federal Reserve preferred gauge for inflation, the data is forecast to show prices likely increased by 0.1% last month, down from 0.4% in November. 

On an annual basis, price growth likely decelerated from 5.5% in November, to 5.1% last month. Six months ago the reading was 7%, highlighting the progress being made. Like the RBA, the data is set to play a key role in determining what central bank figureheads decide at the next Fed meeting, starting January 31st.

Other data on the agenda includes durable goods orders, services and manufacturing activity, plus consumer sentiment.

Stocks on watch

A strong rally by tech stocks in the US, and bitcoin prices hitting their highest level since August suggest upbeat sentiment could flow through to tech names in the corresponding sector on the ASX to start the new week. 

Google parent company Alphabet (NASDAQ: GOOGL) surged more than 5% after the internet search giant unveiled plans to cut an estimated 12,000 jobs amid the economic slowdown. Meanwhile, media streaming giant Netflix (NASDAQ: NFLX) also put in a bumper session, climbing 8.5% after its earnings report showed encouraging numbers as far as its subscriber base.   On the ASX, some of the tech names that might be on watch include WiseTech Global (ASX: WTC), Xero (ASX: XRO), NextDC (ASX: NXT), and Altium (ASX: ALU), among others.

Copper stocks could attract some attention over the coming days after major producer Glencore was forced into suspending operations at its Antapaccay copper mine in Peru on Friday. That followed a third attack on the site by protesters in the space of a week, with growing unrest spreading across the South American nation. 

Although the situation was brought under control, Peru is the world second largest copper producer, and volatility across the country threatens to crimp supply and impact copper prices for the likes of Sandfire Resources (ASX: SFR) and South32 (ASX: S32). The latter is also in the spotlight with its quarterly report out today, while Sandfire's trading update is scheduled for tomorrow.Some of the other ASX names offering quarterly reports this week include Woodside Energy (ASX: WDS), Evolution Mining (ASX: EVN), and Fortescue Metals Group (ASX: FMG).US earnings kick into overdrive this week, headlined by results from some of the biggest companies in the world. Microsoft (NASDAQ: MSFT), Johnson & Johnson (NYSE: JNJ), Verizon (NYSE: VZ), and Lockheed Martin (NYSE: LMT) will report earnings on Tuesday, US-time.A day later, the likes of Tesla (NASDAQ: TSLA), AT&T (NYSE: T), IBM (NYSE: IBM), and Boeing (NYSE: BA) will publish their reports. Tesla is arguably the key name on the radar, with the company recently forced to push through major price cuts after missing its key deliveries target for 2022. Investors will be looking for commentary regarding the outlook for demand in light of a slowing economy.On Thursday, earnings include Visa (NYSE: V), Mastercard (NYSE: MA), and Intel (NASDAQ: INTC), while Chevron (NYSE: CVX) and American Express (NYSE: AXP) round things out on Friday.

Across the board, more than 80 companies that make up the S&P 500 will report this week, including stocks from the industrials, tech, financials, and pharma sectors. S&P 500 earnings are expected to decline by an estimated 3.9% in the most-recent quarter, with easing consumer spending believed to be a key headwind.