ING Investment Management, part of the giant Dutch financial services group, has moved to take a bearish stance on equities and has cut its gross domestic product forecast for the US and eurozone as debt default fears continue to grip markets.

In a note, ING said that recent European Union packages to resolve the region’s debt crisis – focusing on countries such as Greece and Italy – have not calmed markets, aggravated by disappointing economic data.

A week ago, ING said it “decided to open an underweight position in equities versus an overweight in fixed income (AAA treasuries)”.

ING has recently cut its 2011 gross domestic product forecast to 1.7 per cent from 1.9 per cent and has kept its 2012 GDP forecast at 1.7 per cent. As for the US, ING said the “upcoming fiscal tightening in the US will be a drag on US and global growth”, and has cut its US GDP growth forecast for this year to 1.8 per cent (from 2.3 per cent) and for 2012 to 2.6 per cent (from 2.8 per cent).