The Australian share market looks set for a sharp drop at the open this morning after Wall Street ended last week on a sour note once investors digested the latest inflation data.

Economic Calendar and News

First on the agenda this week is minutes from the most recent RBA meeting, where investors will be parsing the commentary for further clues on why the central bank opted to ease the rate at which it is hiking interest rates.

With other central banks around the world forging ahead with larger interest rate hikes, and still yet to see any impact from past hikes in terms of reducing inflation, it remains to be seen whether the RBA has made the correct call. In the meantime, its stance has only added to the woes of the Australian dollar, pushing up prices of imports, and complicating the inflation outlook.

Also on the cards this week is national employment data. Forecasts suggest around 25,000 jobs were created in September, alongside a steady participation rate. Those figures could give rise to an unemployment rate of 3.5%, at least according to economists. 

In the US, updates will focus on the housing market, including data on last month housing starts, building permits, and existing home sales. A number of officials from the Federal Reserve will also speak over the coming days, which follows last week hot' inflation data, where core prices rose at their fastest pace in 40 years.Arguably the week biggest event will be third-quarter GDP figures out of China, due today. Over the weekend, China National Congress kicked off, where President Xi Jinping signalled the country is making a pivot from rapid growth to instead develop self-sufficiency in areas like technology. 

No indications were given that the country is ready to depart from its zero-Covid approach, which has been a major drag on economic growth thus far. As such, the latest GDP out of the world second largest economy is tipped to have increased 3.8% in the September quarter, and 3.5% year-over-year given a slow first half owed to lockdowns and other pandemic restrictions.

Elsewhere, the UK will release inflation data for the month of September, and there is some speculation that the Biden administration could be looking at releasing oil from its strategic reserves, or even limit exports in an effort to combat the recent price increase tied to the production cuts agreed to by OPEC+ members.

Stocks on watch

There are more earnings reports set to come through over the following days, starting with the rest of the financial sector. Bank of America (NYSE: BAC) and Goldman Sachs (NYSE: GS) are the highest-profile duo from the banking segment that will report quarterly results, but they will also be accompanied by names such as Charles Schwab (NYSE: SCHW) and Barclays (NYSE: BCS).

Tesla (NASDAQ: TSLA) is still in the thick of the action, with the stock trading at its lowest level in 16 months just as it prepares to publish its own results for the September quarter. The company recently disappointed onlookers when it announced EV delivery and production figures that fell short of analysts' expectations, particularly since it has brought on new production capacity over recent months. A broad-based tech sell-off has only compounded its recent decline.

The first consumer tech name on show this earnings season will be none other than Netflix (NASDAQ: NFLX), which has been garnering attention of late thanks to its plans to introduce ad-supported streaming options from next month. 

Netflix has provided guidance that it expects to add around 1 million subscribers over the quarter, which compares with a loss of that amount in the June quarter. Compared with the same period last year, where 4.4 million subscribers were added, the company is feeling the effects of competition, inflation affecting household budgets, and easing tailwinds tied to stay-at-home orders. The significant appreciation of the greenback could also weigh on its revenue, which is heavily tilted to overseas markets.

Just days after Qantas (ASX: QAN) updated the market with buoyant trading news suggesting it is well on the way towards being back in the black, shareholders in American Airlines (NASDAQ: AAL) and United Airlines (NASDAQ: UAL) will be hoping they are on a similar path. 

The travel sector has recorded a remarkable turnaround since most countries dropped pandemic restrictions, with demand for international travel soaring as renewed confidence takes hold. Inflation has yet to dent holiday-makers' travel plans, although investors will be looking for commentary around this point.

And lastly, CSL (ASX: CSL) is shedding more light on its Vifor business, which it acquired just shy of a year ago. A global leader in iron deficiency and nephrology, Vifor set CSL back US$11.7 billion, and investors can expect to understand how the business has been contributing to the Australian biotech giant bottom-line. One of Vifor key patents in Europe is set to expire in the coming year, meaning some strategic insights are expected to be shared with investors as the risks of generics become more apparent.