Investors favour European to US equities as concerns about the fiscal cliff continue and eurozone debt woes wane, according to a Bank of America Merrill Lynch survey.

This is the first time asset managers have opted for European equities over US equities since November 2010, according to Bank of America Merrill Lynch's November buyside survey. Respondents were 7% overweight in European equities, compared to being 5% overweight in US equities.