Market Wrap by Decoder – 8 Nov 13

• HK/CN – Progressive water pricing system to go nationwide. China will penalize heavy users of water with higher rates under a new nationwide pricing mechanism designed to cut wasteful consumption of the resource, said Guo Jianying – deputy inspector of the National Development and Reform Commission’s price department. Guo said that the low rates have resulted in a lot of wasted water. “We are facing a shortage of water while at the same time allowing heavy wastage of such resources”, he said. A progressive pricing system in which heavy users will pay more than those who consume less, may help resolve the problem, Guo said. Observers expect heavy consumers, such as leather, glass and metal suppliers will be seriously affected by the new water pricing mechanism – http://www.ejinsight.com

• US stocks tumbled the most in a month on Thurs as a drop in personal consumption growth in 3Q raised questions about the strength of the US recovery. Initial jobless claims stood @ 336K, pretty much in line with the forecast. Over in EU, Draghi surprised the traders by cutting the BM interest rate to 0.25% (record low) but he emphasized that the cut has got nothing to do with the recent strength in the Euro. Among the negative sentiment, Twitter still received overwhelming response to its debut, adding 70% to its market cap at the closing (despite setting its IPO $1 higher than the range given 23-25). NYSE value traded saw a 20% increase against the recent average @ 27,792.

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