By Nivedita Balu
(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. 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. [.N]
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.
(Reporting by Ragini Mathur in Bengaluru; Editing by Mohammed Safi Shamsi and Chris Reese)