* Oil falls on Chavez's Libya mediation proposal
* World stocks rise
* ECB boost euro with inflation comments
(Updates with U.S. stocks open, changes byline, dateline; previous LONDON)
By Caroline Valetkevitch
NEW YORK, March 3 (Reuters) - U.S. stocks jumped more than 1.0 percent on opening as weekly jobless claims dropped to their lowest in more than 2-1/2 years on Thursday, while the euro rallied against the U.S. dollar after the ECB president warned about inflation risks.
Oil prices dipped, also bolstering world stocks, after a proposal by Venezuela President Hugo Chavez to try to broker a peace deal in Libya. World stocks as measured by MSCI <.MIWD00000PUS> were up 1.0 percent and on Wall Street the Dow Jones industrial average was up 150 points shortly after the open.
The euro soared after European Central Bank President Jean-Claude Trichet said inflationary risks are to the upside and "strong vigilance" is required. The word "vigilance" in previous tightening cycles usually suggested a near-term rate hike. For Trichet's comments see [ID:nLOOKCBANK].
Oil jumped to approach 2-1/2-year highs on Wednesday as violence escalated in oil producer Libya. Brent crude oil was down $1.74 at $114.61 a barrel. Investors worry that political instability could spread to major oil producer Saudi Arabia, a central U.S. ally in the region, and other oil suppliers.
In the U.S. stock market, the Dow Jones industrial average <.DJI> was up 150.00 points, or 1.24 percent, at 12,216.80. The Standard & Poor's 500 Index <.SPX> was up 15.52 points, or 1.19 percent, at 1,323.96. The Nasdaq Composite Index <.IXIC> was up 33.95 points, or 1.24 percent, at 2,782.02.
As stocks rose, U.S. bonds fell. The benchmark 10-year note was down 16/32, its yield rising to 3.53 percent from 3.47 percent on Wednesday, after the jobless data.
The euro pierced resistance around $1.3958, its 200-week moving average, to hit as high as $1.3976 , its strongest since Nov. 8 and on track to test the psychologically important $1.40 level.
(Additional reporting by Wanfeng Zhou, Ellen Freilich and Ryan Vlastelica in New York; Jeremy Gaunt, Caroline Copley, Neal Armstrong and Simon Falush in London)
