* C$ jumps to 99.01 U.S. cents
* Bonds fall as risk sentiment flows to stocks
TORONTO, Dec 2 (Reuters) - The Canadian dollar extended gains against the U.S. dollar on Thursday, rising for a second straight session with appetite for risk stoked by rallying equity markets.
World stocks rose for a second day in a row, while the euro extended its hefty gains, as expectations grew the European Central Bank might deliver measures to alleviate worries over euro zone debt. ECB President Jean-Claude Trichet holds a news conference at 8:30 a.m. (1330 GMT) following the central bank's executive council meeting
Market watchers were eying the C$1.0080 level, or 99.21 U.S. cents, which represents important technical chart support. It briefly touched C$1.0079 to the U.S. dollar, or 99.22 U.S cents, its highest since Nov. 16.
"We may see another run at it, perhaps through it, depending on the risk appetite as generally measured by equity valuations today," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
"It's been a fairly active session for Canada buying."
At 8:15 a.m. (1315 GMT), the Canadian dollar CAD=D4 was at C$1.0100 to the U.S. dollar, or 99.01 U.S. cents, up from C$1.0170 to the U.S. dollar, or 98.33 U.S. cents, at Wednesday's close.
Canadian government bonds tracked U.S. Treasuries lower as appetite for riskier assets such as stocks drew investors away from the relative safety of government debt.
The two-year government of Canada bond CA2YT=RR fell 9 Canadian cents to yield 1.724 percent, while the 10-year bond CA10YT=RR slipped 60 Canadian cents to yield 3.251 percent.
The Canadian dollar's upside may be challenged ahead of Friday's release of the Canadian November jobs reports. It will be the last major piece of data to consider before the Bank of Canada's next interest rate decision on Dec. 7. The U.S. jobs report is also on tap on Friday.
The market is already pricing near-certainty that the central bank will leave unchanged the target for the overnight interest rate at 1 percent. BOCWATCH
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)