UPDATE 1-European stocks rally on U.S. shutdown deal, DAX hits record

* DAX bulls aim at 14,000 points

* Carrefour takes the fight to Amazon

* EasyJet jumps after Q1 results (Adds shares, comments)

LONDON, Jan 23 (Reuters) - European shares rose to new highs on Tuesday after U.S. senators struck a deal to end a three-day government shutdown.

Euro zone stocks reached their highest in a decade, with Germany's DAX jumping more than 0.9 percent at the open to touch a record 13,597 points.

"As the next goal, the bulls have the hurdle of 14,000 points in mind," said market analyst Milan Cutkovic at trading house AxiTrader. "With the current mood on the stock markets, this is a realistic scenario for the coming weeks."

After a previous session fueled by M&A news, corporate updates maintained the buoyant mood.

Investors cheered plans by Europe's biggest retailer Carrefour to slash costs, open its lossmaking Chinese business to new investors and spend more heavily on e-commerce in the face of competition from Amazon.

Carrefour led the STOXX 600, itself on a 2-year and half year high, with a 6.5 percent rise. Bernstein analysts said the strategic plan "ticks all the right boxes".

Easyjet was a close second, up 6.1 percent, after reporting first-quarter results.

"A strong performance for new boss Johan Lundgren in his first quarter as easyJet benefited from a combination of Ryanair cancellations and the demise of a trio of peers removing some capacity from the market", senior ETX market analyst Neil Wilson commented.

Sky shares were up 2.9 percent after a UK regulator said Fox buying Sky was not in the public interest because of media plurality concerns, but suggested remedies.

The regulator CMA also backed Fox's commitment to broadcasting standards.

"Concerns on broadcasting standards would likely have been a complete deal breaker," said Neil Campling, Co-Head of the Global Thematic Group at Mirabaud Securities.

Hungarian low-cost airline Wizz Air rose 3.5 percent after saying it was interested in Italy's struggling flag carrier Alitalia but only regarding short and medium-haul routes.

Shares in computer peripherals and mobile speaker maker Logitech jumped close to 5 pct after it reported better than expected sales and raised its guidance.

Online grocery technology provider Ocado lost 5.1 percent after a 27 percent surge on Monday when it unveiled a deal with Canada's second-largest food supermarket group Sobeys. (Additional reporting by Danilo Masoni and Alasdair Pal; editing by Tom Pfeiffer)