World Bulletin / News Desk

The euro and pound fell against the dollar Monday after rallying last week when central banks signalled tighter monetary policy in reaction to solid economic growth and high inflation.

The dollar last week tumbled after the ECB, Bank of England and Bank of Canada indicated that the age of cheap cash -- in place since the financial crisis -- was drawing to a close as the world economy gets back on track.

"I think the coordination of language reflects a coordination of the recognition that the global economy is pointing higher and the time for emergency policies in individual jurisdictions has ended," Greg McKenna, chief market strategist at AxiTrader, said Monday.

During the first half, the euro jumped about ten percent against the dollar, while the pound gained almost as much from its January lows, despite British political uncertainty caused by the country's decision to leave the EU.

On equity markets Monday, London's benchmark FTSE 100 index was up 0.4 percent around midday, compared with Friday's close.

In the eurozone, Frankfurt's DAX 30 gained 0.7 percent and the Paris CAC 40 jumped 1.0 percent, as traders reacted to regional manufacturing PMIs.

The UK's manufacturing reading came in at a three-year low of 54.3, which "doesn't bode well for the country's second quarter growth", noted Spreadex analyst Connor Campbell.

"While the UK economy suffered its latest setback, the eurozone continued to power ahead, with the region's own manufacturing PMI arriving at a six-year peak of 57.4," he added in a note to clients.

In company news Monday, shares in EDF were down 0.6 percent at 9.43 euros after the French power supplier said a project to build a nuclear plant at Hinkley Point in Britain will overrun by £1.5 billion ($1.95 billion, 1.71 billion euros), as it warned also of delays of up to 15 months.

EDF is part of a French-Chinese consortium that was awarded the two-reactor project last year despite criticism from green groups and cost warnings from experts.

Elsewhere Monday, Tokyo's Nikkei stocks index ended 0.1-percent higher, boosted by a slightly weaker yen and a pick-up in confidence among Japanese businesses, traders said.

However, investors were spooked by a huge defeat for Prime Minister Shinzo Abe in Tokyo assembly elections, with his ruling party losing more than half its seats as he is rocked by a series of scandals and falling support.

Shanghai meanwhile edged 0.1 percent up following a better-than-expected private survey showing Chinese manufacturing expanded last month.

China on Monday widened access to its $10-trillion bond market, which analysts said will boost Beijing's drive to internationalise the yuan and more deeply integrate its markets with the world financial system.

- Key figures around 1045 GMT -

London - FTSE 100: UP 0.4 percent at 7,338.92 points

Frankfurt - DAX 30: UP 0.7 percent at 12,415.77

Paris - CAC 40: UP 1.0 percent at 5,175.30

EURO STOXX 50: UP 1.0 percent at 3,475.37

Tokyo - Nikkei 225: UP 0.1 percent at 20,055.80 (close)

Hong Kong - Hang Seng: UP 0.1 percent at 25784.17 (close)

Shanghai - Composite: UP 0.1 percent at 3,195.91 (close)

New York - Dow: UP 0.3 percent at 21,349.63 (close)

Euro/dollar: DOWN at $1.1378 from $1.1422 at 2050 GMT on Friday

Pound/dollar: DOWN at $1.2966 from $1.3027

Dollar/yen: UP at 112.88 yen from 112.45 yen

Oil - Brent North Sea: DOWN six cents at $48.71 per barrel

Oil - West Texas Intermediate: UP two cents at $46.06