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* Portugal bonds, stocks slide as crisis deepens * Global equity markets slip in rocky trade but Wall St bucks trend * Oil rises on worries over Mideast tensions By Herbert Lash NEW YORK, July 3 (Reuters) - Global equity markets slid on Wednesday on worries over signs of slowing growth in China and deepening political turmoil in Portugal, where talks over the government's future weighed on the euro and threatened to reignite the euro zone crisis. U.S. stocks bucked the trend, however, rising in a shortened session ahead of the July 4 holiday after see-sawing on news of surprisingly strong private sector job creation and data showing unexpectedly weak growth in the huge services sector. Portugal's 10-year bond yield shot above 8 percent and its stock market slumped 6 percent at one point on fears a snap election could derail Lisbon's exit next year from a bailout by the European Union and International Monetary Fund. Concerns over Greece's ability to fulfill the conditions of its bailout also raised the prospect of a reawakened debt crisis in the 'peripheral' countries of the euro zone. U.S. oil prices hit a 14-month high on fears unrest in Egypt could destabilize the Middle East and spark supply disruptions. Gold rose more than 1 percent as the dollar and equity markets remained under pressure. European shares were dragged lower by falling banking stocks as the political crisis in Portugal led the country's bourse to post its worst day in two years. Portuguese stocks closed down 5.3 percent. Euro zone banks fell 1.8 percent, the biggest declining sector, and the broad FTSEurofirst 300 of leading European shares fell 0.67 percent to a provisional close of 1,151.03. MSCI's all-country world equity index fell 0.5 percent. U.S. private employers stepped up hiring in June, and new applications for unemployment benefits fell for a second straight week last week, pointing to a steadily improving labor market. Private payrolls increased by 188,000, up from the 134,000 jobs added in May, the ADP National Employment Report showed. Economists polled by Reuters had expected a gain of 160,000. But the Institute for Supply Management said its services index fell to 52.2 from 53.7 in May, confounding economists' forecast for a gain to 54. While a reading above 50 indicates expansion, growth was at its lowest since February 2010. The Dow Jones industrial average was up 72.65 points, or 0.49 percent, at 15,005.06. The Standard & Poor's 500 Index was up 2.65 points, or 0.16 percent, at 1,616.73. The Nasdaq Composite Index was up 14.93 points, or 0.43 percent, at 3,448.32. "We do tend to rally into the holiday, especially the July 4th holiday," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago. "That ADP number took some of the fear out of Friday's payroll number, told us you can stay long into Friday, at least that's what some of the participants are going to do." U.S. equities were whiplashed on light volume as many market participants were out of the office ahead of the Fourth of July holiday on Thursday. U.S. equity and bonds markets will close early on Wednesday and reopen on Friday. Chinese shares fell after a read on the country's services sector compounded concerns about slowing growth momentum, while U.S. oil hit a 14-month high on fears political unrest in Egypt could destabilize the Middle East and spark supply disruptions. The yen rose across the board as political wrangling in Portugal and Egypt prompted investors to seek refuge in the Japanese currency, although it trimmed gains against the dollar after the data showing a stabilizing U.S. labor market. "The unresolved situation in Egypt and the government resignations in Portugal are an issue," said Nick Bennenbroek, head of currency strategy at Wells Fargo Securities in New York. "We're not only seeing some of the G10 currencies weaken, but also emerging market currencies," Bennenbroek said. The dollar fell 0.83 percent to 99.78 yen, slightly recovering from the day's lows of 99.24. The euro was also hit, down 0.79 percent at 129.80 yen. Trading in government bond markets also was rocky. The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 2.4771 percent in see-saw trade. German Bund futures pared gains after the ADP U.S. private sector jobs data. Bund futures were last up 45 ticks on the day at 142.14, having traded around 142.43 before the data. Crude oil prices rose on a sharp decline in stockpiles in top consumer the United States and political unrest in Egypt, sending U.S. oil to a 14-month high. U.S. crude rose above $100 a barrel, closing its gap with Brent, after the American Petroleum Institute reported that U.S. crude stocks dropped by 9.4 million barrels last week. Analysts had expected a draw of 2.3 million barrels. U.S. oil was up $2.01 at $101.61 a barrel, having touched $102.18 in earlier trade. Brent rose $1.79 to $105.79.