I don't believe water has a strong magnetic dipole, so l wouldn't expect it to respond to a magnetic field.
However, as it has strong electric dipole it will respond to an electric field. For an electromagnetic wave B = E/c, (where c is the speed of light), so you could calculate the response to the B-field. But its really response to the E-field.
I believe also that only electric field has an effect on water molecules. However, I have seen people tried to test the effect of water in magnet. I think water can react to water, but it is not strong and significant.
all materials are diamagnetic to some degree, ie induced field acts in a direction opposite to the applied field, so this would be induced magnetic polarisation. If there is a small residual permanent magnetic dipole (ie an unpair spin of an electron) then the material will have a degree of paramagnetism about it. I'm not sure quite which way it is, perhaps consult von Hippel on dielectric and magnetic properties of materials.
water is diamagnetic, with a magnetic susceptibility of -9 x 10^-6. I'm not sure if this is DC or AC susceptibility, but it will change with frequency. Diamagnetism is a subtle effect. You'll be able to find more detials on the magnetic susceptibility of water if you search. best wishes, Neil