Investors make first sharp retreat from emerging markets since June 2013

LONDON: The first net outflow of foreign money in 18 months hit emerging markets in December as oil prices fell, risk aversion grew and investors anticipated a Federal Reserve rate hike, the Institute of International Finance said.

Portfolio outflows totalled US$11.5bil with bond investment down US$7.8bil and US$3.7bil withdrawn from stocks, the Washington-based finance industry body said in its monthly report.