Germany and France have resolved to work together in handling the shock of the United Kingdom exit from the European Union.

The agreement was reached at a meeting between German Chancellor, ANGELA MERKEL and French President, FRANCOIS HOLLANDE.

However; the French President warned that Europe was at divisions, dissension and quarrels, which demands working together to surmount the challenges.

The outcome of the Brexit referendum last Thursday has triggered a flurry of diplomatic activity, with both the German Chancellor and the French President scheduled to hold another round of meeting in Berlin.

In the meantime; authorities in the United Kingdom are taking steps to try and stabilize markets reactions in the aftermath of the vote to leave the EU.

UK Chancellor GEORGE OSBORNE issued a statement before the start of trading, stressing that the UK was ready to face the future from a position of strength.

OSBORNE said thorough contingency plans were in place, in discussion with the Bank of England, to deal with whatever happens.

In other developments; British Prime Minister DAVID CAMERON is to hold a cabinet meeting today, while BORIS JOHNSON, who led the Leave campaign and has been tipped to replace CAMERON as Prime Minister, has assured that the UK would continue to intensify co-operation with the EU.