Copper prices rebounded on Friday after a sharp decline on Thursday, driven by a broad selloff across risk assets including commodities. The metal's recovery comes as trading activity slows ahead of China's upcoming break, a major factor given China's position as the world's largest copper consumer. Copper futures showed signs of stabilization after the previous day's losses.

The Thursday selloff reflected broader market jitters affecting commodities and risk assets alike. Traders pointed to reduced liquidity and positioning ahead of the Chinese holiday as contributing factors to the volatility. Risk assets across sectors experienced pressure, with copper particularly sensitive given its industrial applications and China's outsized influence on demand.

Market participants are watching for signals on whether the rebound signals a bottom or merely a temporary pause. The timing of China's break adds complexity to near-term price action, with many investors reducing exposure ahead of the holiday period. China's demand remains the critical variable for copper's trajectory