As Canadian banks prepare for their fourth-quarter earnings reports, the outlook appears more optimistic amid easing concerns over mortgage defaults and a potential recession. Major banks in Canada are entering this earnings season with a sense of stability, as recent assessments indicate a retreat from the previously looming threats of high mortgage renewal rates. Analysts suggest that investors are looking for signs of recovery, with expectations for mixed earnings results influenced by upcoming mortgage renewals and anticipated interest rate cuts. The financial sector is poised for a critical evaluation as it navigates these challenges while hoping for better performance in the coming months.