The coming week shapes up as one of the most pivotal for markets in 2022 thus far, with a barrage of economic news and data-points set to be released, both home and abroad, as well as mega-tech earnings from Apple, Alphabet, Amazon, and Microsoft.

Economic Calendar and News

By far the biggest talking point this week will be the latest meeting of the US Federal Reserve, with the central bank all but certain to hike interest rates in another supersized move. 

It remains to be seen whether the bank opts for a 75 basis point hike, as most economists expect, or a 100 basis point hike, which hasn't been ruled out in some quarters of the market, even though the Fed has somewhat walked back from that prospect.

Regardless, investors will be digesting what impact the rate hike might have on the economy, and whether a recession could be on the cards, or already in effect. However, investors might not have to wait too long for confirmation, as second-quarter GDP data is set to be released on Thursday.

Forecasts to date suggest the economy may have eked out a modest gain of 0.4% in the second quarter of the year, which follows a 1.6% decline to open the year. However, the Atlanta Federal Reserve GDP tracker is pointing to another decline of 1.6% for the second quarter. If that transpires, it would align with the technical definition of a recession.

If that not enough, the Federal Reserve preferred inflation measure, the personal consumption expenditure price index, will be released at the back end of the week on Friday. There will also be fresh readings on consumer sentiment, new home sales, plus durable goods and inventories.The Australian economy will also be in focus this week when the Australian Bureau of Statistics releases its latest inflation data on Wednesday, otherwise known as the Consumer Price Index. 

It is shaping up to be a sombre announcement for households and investors alike, with the annual reading tipped to come in at 6.3%, the highest in more than 32 years, and leaving the door open to further aggressive rate hikes from the RBA.

The following day, Treasurer Jim Chalmers will provide an economic statement covering the state of the economy, as well as refreshed forecasts for GDP, wages, and inflation. That comes at a time where real wages are on the precipice of falling at an accelerated rate, defying the government pre-election pitch.

Stocks on watch

US reporting hits its stride this week thanks to reports from some of the biggest companies in the world. Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) open proceedings on Tuesday US-time, with Meta Platforms (NASDAQ: META) following a day later. The trio will then be joined by the biggest names of the bunch in Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN).The results of the above names will be in focus not just because of their earnings during the June quarter, but rather, their forward outlook. Amid a slowdown in activity by the US consumer, as well as the prospect of a recession firmly in play, growth trajectories will be pivotal to support valuations. As we saw during the last earnings season, the likes of Amazon were hurt by a weak growth outlook, and Meta heads into the new trading week seeing some of its industry peers like SNAP (NYSE: SNAP) and Twitter (NYSE: TWTR) posting weak results.

Meanwhile, Alphabet is likely to see a hit from the deteriorating global economic environment, the war in Ukraine, as well as a likely drop-off in terms of business advertising expenditure. It is also dealing with stricter regulations in Europe that are hampering Google targeted ads.

This handful of names represents just a small portion of the entire S&P stocks that will report this week, with over a third of the index set to hand down earnings. Other high profile stocks scheduled to hand down earnings this week includes Boeing (NYSE: BA), Merck (NYSE: MRK), Pfizer (NYSE: PFE), Intel (NASDAQ: INTC), Mastercard (NYSE: MA), McDonald (NYSE: MCD), Ford (NYSE: F), and Qualcomm (NASDAQ: QCOM).In Hong Kong, there was a boost for bank stocks and developers as news filtered through that China banking regulator is prepared to act to stave off the risk of a credit squeeze causing damage throughout the sector. That provided an end-of-week tailwind for the likes of China Merchants Bank (HKG: 3968), China Construction Bank (HKEX: 0939), and Agile Group Holdings (HKEX: 3383).Meanwhile, with Apple reporting this week, some of the Hong Kong-listed parts suppliers that feature within its supply chain could see further volatility a week after the global electronics manufacturer announced it is easing its hiring activity. The stocks most affected could include AAC Technologies Holdings (HKG: 2018) and Sunny Optical Technology (HKG: 2382).The ASX will play second fiddle to offshore markets and economic data this week, but if there is one company that might be garnering attention this week, it could be Fortescue Metals Group (ASX: FMG). The iron ore miner is set to release its June quarterly production report on Thursday, July 28. Although it is likely to have benefitted from elevated iron ore prices during the June quarter, the company outlook and cost control will come into focus as the industry deals with labour constraints, inflationary pressure, and a sharp downturn in iron ore prices of late.Inflation-sensitive stocks could also come into focus as expectations of a high CPI reading spark rate hike angst. Consumer discretionary stocks like JB Hi-Fi (ASX: JBH), Flight Centre (ASX: FLT), Harvey Norman (ASX: HVN), Super Retail Group (ASX: SUL), and Domino (ASX: DMP) are among those that could see above-average trading volumes, while shareholders of price makers' such as Woolworths (ASX: WOW) and Coles (ASX: COL) will be hoping those stocks continue to gain momentum.