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By Nivedita Balu

Dec 27 (Reuters) -

Canada's main stock index fell on Friday, weighed by losses

in technology and mining shares as traders returned after

Christmas break, even as the index was on track to record its

best year since 2021.

The Toronto Stock Exchange's S&P/TSX composite index

was down 50.42 points, or 0.20%, at 24,796.40.

The index has gained 18.1% so far this year, with two

more trading sessions left in the coming week.

The Canadian markets have benefited from policy easing

cycles at home and in the United States, as well as a rally

fueled by Donald Trump's victory in the November U.S.

presidential election.

However, Canadian equities have faced a rough few weeks

in December, partly due to the U.S. Federal Reserve's forecast

of fewer rate cuts next year due to stubbornly high inflation.

Looking to 2025, the focus will shift to Donald Trump's

arrival in the White House after having pledged to impose a 25%

tariff on all imports from Canada, a blow to a country that

sends a majority of its crude exports to the United States.

"It's very quiet (on Friday) because everyone is just

getting ready to position for year end," said Greg Taylor, chief

investment officer at Purpose Investments in Toronto.

"We're starting to see a lot more nervousness creep up

into markets with bond yields staying higher than everyone

thought. We're trying to get into the new year and get more

clarity about what the new U.S. administration is going to do,"

Taylor said.

Among sectors, Canada's information technology

lost 1.2%, dragged by a 4.5% fall in bitcoin miner Bitfarms ( BITF )

. The industrials index fell 0.5%.

Gold prices fell. The materials sector,

which includes precious and base metals miners and fertilizer

companies, lost 0.2%.

In the U.S., Wall Street's holiday cheer also ended,

with all three main benchmarks closing lower in a broad-based

sell-off.

Additionally, in a bid to address the looming threat of

U.S. tariffs, Canada's new Finance Minister Dominic LeBlanc and

Foreign Affairs Minister Melanie Joly will meet aides to U.S.

President-elect Donald Trump in Florida on Friday.

Trump has threatened a 25% tariff on imports from Canada

until the country stops drugs and migrants from crossing its

border with the United States.