There are two ASX 200 shares that are worth watching right now. That’s because both are outperforming the S&P/ASX 200 Index (ASX: XJO) in 2021 and continue to track the Aussie economy in its post-coronavirus recovery.
Why these ASX 200 shares are tracking the Aussie economy higher
The two shares that have had a solid start to the year are Seek Limited (ASX: SEK) and REA Group Limited (ASX: REA). Seek shares are up 22.1% since the end of February while the REA share price is up 16.9% in that same period.
These are two large cap ASX 200 shares that have been performing strongly in recent months. For context, the benchmark index is up 6.1% since the end of February and 6% year to date.
But more importantly, employment and real estate are two key factors in the Aussie economy right now. All eyes have been on the latest employment numbers as an indicator of our economic health.
Those figures for March showed signs of recovery as the unemployment rate decreased by 20 basis points to 5.6%. The number of unemployed people as defined by the Australian Bureau of Statistics fell from 805,200 to 778,100 in March.
According to ABS head of labour statistics, Bjorn Jarvis, employment and hours worked in March 2021 were both up with indications that things are returning to their pre-COVID levels.
That means ASX 200 shares like Seek that drive revenue from a good labour market are worth watching. Then there’s the word on everyone’s lips right now: property.
ASX 200 real estate shares have been recovering in recent times as Aussie property booms. Capital city markets, in particular, have been strong with solid clearance rates and rising house prices.
The REA share price boom in the last 2 months or so has been boosted by strong listing numbers. People are beginning to cash in on the housing boom after subdued numbers throughout a COVID-impacted 2020. That has sent the REA share price surging in April as the CoreLogic home value index showed strong gains.
Foolish takeaway
REA and Seek are two ASX 200 shares worth watching as the Aussie economy continues to recover to pre-COVID levels. Both shares have very different but important ties to key economic drivers which are showing early signs of recovery in 2021.
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More reading
- 5 things to watch on the ASX 200 on Friday
- ASX 200 rises, Woolworths falls, Fortescue was flat
- Why ASX 200 oil shares are eyeing US$80 per barrel Brent crude prices
- Why ASX bank shares may be facing a big sell-off in the next few weeks
- Are Woolworths (ASX:WOW) shares too expensive?
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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