Commodity prices and global markets slumped overnight as the Eurozone debt crisis once again reared its ugly head.

The market dropped on opening and dipped almost 50 points to an intraday low of 4286.29 points.

However, the index clawed back some ground to close at 4319.6 points, a 0.3% or 14.26-point drop.

According to Bloomberg, the Chinese government said it would double the amount foreigners could invest in the country’s equities.

“Expectations for China’s additional easing are causing short-covering,” Mizuho Securities senior technical analyst Yutaka Miura said.

“It’s not that a real solution has been brought to Europe’s crisis. That’s why Spain’s debt sale is reviving concern.”

Commodity prices sent miners more than 1% lower, dragged down by index heavyweight BHP Billiton which fell almost 0.9% or A30c to $34.44.

Rio Tinto fell 1.7% or $1.10 to $65.29, Eldorado Gold Corporation dropped 3.1% or 41c to $12.73 and Mount Gibson Iron shed 4% or 4.5c to $1.07.

Aquila Resources bucked the trend, rising 4.3% or 22c to $5.28.

Meanwhile, Castlemaine Goldfields jumped more than 22% or 2.5c to 12c after announcing a resource increase.

Finally, after closing 3.5% down overnight to $US1614.10 per ounce, gold rebounded slightly to $1627.50/oz this afternoon.