One of the big four banks expects the RBA to raise interest rates six months later than previously expected, after changes were made to inflation measures.

France and Germany say they are convinced that debt-ridden Greece's future lies in the eurozone, as Athens vowed to stick to the harsh austerity measures.

Australian shares opened more than one per cent higher after a rally on European and US markets on the back of European talks about the debt crisis.

Stocks of interest on the Australian Securities Exchange on Thursday

Sales of new motor vehicles in Australia rose 3.3 per cent in August, official data shows.

The Australian share market closed more than one per cent lower on speculation China was unlikely to inject capital into debt-ridden European economies.