A rare sight on the streets of Gaza.

On Thursday Palestinians carrying flags representing the enclave's two bitterly opposed political parties - Hamas and Fatah - marched side by side in Gaza City.

The hundreds were celebrating a ceasefire brokered by Egypt late Wednesday that has ended eight days of bombardment by Israeli forces.

The latest flare up in the cross-border conflict resulted in the deaths of 162 Gazans, including 37 children, and five Israelis.

Ismail Haniyeh, leader of Gaza's ruling Hamas party, is expected to address the crowd later with the hopes of ending the rivalry between the two sides.

The truce has temporary halted the possibility of an Israeli invasion of the enclave and calmed tensions that have risen in southern Israel.