December was more positive for EM equity ETFs with only Brazil lacking an invitation to the BRIC inflow party. The fall in oil impacted US HY credit and as a result these ETFs had outflows, but investment grade credit remained popular both in the US and Europe.
In mid-December crude oil volatility gushed up above 50% where it has remained ever since (see OVX Index). Volatility has spilled into other markets as concern mounts that this is a story that is about demand as much as it is about oversupply. The volatility slick has grown to encompass equity markets as well as fixed income and FX, but a clean-up has already started in markets that were oversold e.g. some EM currencies such as INR and TRY where a low oil price should provide a boost to growth.