BlackRock executives: It is difficult to be as optimistic about European stock markets as before.

BlackRock warns that soaring energy costs and rising valuations mean that European stock markets are no longer as attractive of an investment choice as they were a few months ago. Helen Zhu, Chief Investment Officer for Fundamental Equities International at the company, which manages $13.9 trillion in assets, stated that the economic impact of high oil and gas prices, combined with the narrowing valuation gap between European and U.S. stock markets after Europe's relatively strong performance in recent months, has led her to temper her optimism for European stock markets. Zhu said, "It's hard to be as positive on Europe as before," and highlighted the risk exposure to European mainland consumer spending from global energy price shocks. She added, "You can't loudly proclaim that Europe looks cheap anymore. A year ago, the valuation gap was very interesting. Now the valuation gap has narrowed, and from an energy perspective, the risk exposure in Europe is much greater... Therefore, we have to be more selective when looking for opportunities."