Eclipse dependencies search causes NexusIndexManager IOException - eclipse

Question

I am having problems configuring Nexus repository with Eclipse. Everything works except for dependency search. When I enter the dependency name nothing happens. When I looking at the Eclipse log in .metadata.plugins\org.eclipse.m2e.logback.configuration\0.log I see the following error:
2013-12-10 10:18:25,499 [Worker-6] ERROR o.e.m.c.i.i.nexus.NexusIndexManager - Unable to update index for nexus|http://ledmd059.lss.emc.com:8081/nexus/content/groups/public
java.io.IOException: Server returned status code 404: Not Found
at org.eclipse.m2e.core.internal.index.nexus.AsyncFetcher$PipedErrorInputStream.checkError(AsyncFetcher.java:250) ~[org.eclipse.m2e.core_1.4.0.20130601-0317.jar:na]
at org.eclipse.m2e.core.internal.index.nexus.AsyncFetcher$PipedErrorInputStream.read(AsyncFetcher.java:258) ~[org.eclipse.m2e.core_1.4.0.20130601-0317.jar:na]
at java.io.PipedInputStream.read(Unknown Source) ~[na:1.7.0_45]
at java.io.InputStream.read(Unknown Source) ~[na:1.7.0_45]
at java.util.Properties$LineReader.readLine(Unknown Source) ~[na:1.7.0_45]
at java.util.Properties.load0(Unknown Source) ~[na:1.7.0_45]
at java.util.Properties.load(Unknown Source) ~[na:1.7.0_45]
at org.apache.maven.index.updater.DefaultIndexUpdater.downloadIndexProperties(DefaultIndexUpdater.java:457) ~[indexer-core-3.1.0.jar:3.1.0]
at org.apache.maven.index.updater.DefaultIndexUpdater.access$100(DefaultIndexUpdater.java:75) ~[indexer-core-3.1.0.jar:3.1.0]
at org.apache.maven.index.updater.DefaultIndexUpdater$IndexAdaptor.setProperties(DefaultIndexUpdater.java:607) ~[indexer-core-3.1.0.jar:3.1.0]
at org.apache.maven.index.updater.DefaultIndexUpdater.fetchAndUpdateIndex(DefaultIndexUpdater.java:824) ~[indexer-core-3.1.0.jar:3.1.0]
at org.apache.maven.index.updater.DefaultIndexUpdater.fetchAndUpdateIndex(DefaultIndexUpdater.java:135) ~[indexer-core-3.1.0.jar:3.1.0]
at org.eclipse.m2e.core.internal.index.nexus.NexusIndexManager.updateRemoteIndex(NexusIndexManager.java:1126) [org.eclipse.m2e.core_1.4.0.20130601-0317.jar:na]
at org.eclipse.m2e.core.internal.index.nexus.NexusIndexManager.updateIndex(NexusIndexManager.java:1086) [org.eclipse.m2e.core_1.4.0.20130601-0317.jar:na]
at org.eclipse.m2e.core.internal.index.nexus.NexusIndex.updateIndex(NexusIndex.java:145) [org.eclipse.m2e.core_1.4.0.20130601-0317.jar:na]
at org.eclipse.m2e.core.ui.internal.views.MavenRepositoryView$8$1.run(MavenRepositoryView.java:391) [org.eclipse.m2e.core.ui_1.4.0.20130601-0317.jar:na]
at org.eclipse.core.internal.jobs.Worker.run(Worker.java:53) [org.eclipse.core.jobs_3.5.300.v20130429-1813.jar:na]
java.io.IOException: Server returned status code 404: Not Found
at org.eclipse.m2e.core.internal.index.nexus.AsyncFetcher$MonitorListener.onStatus(AsyncFetcher.java:280) ~[na:na]
at com.ning.http.client.SimpleAsyncHttpClient$BodyConsumerAsyncHandler.fireStatus(SimpleAsyncHttpClient.java:828) ~[na:na]
at com.ning.http.client.SimpleAsyncHttpClient$BodyConsumerAsyncHandler.onStatusReceived(SimpleAsyncHttpClient.java:779) ~[na:na]
at com.ning.http.client.providers.netty.NettyAsyncHttpProvider.updateStatusAndInterrupt(NettyAsyncHttpProvider.java:1587) ~[na:na]
at com.ning.http.client.providers.netty.NettyAsyncHttpProvider.messageReceived(NettyAsyncHttpProvider.java:1242) ~[na:na]
at org.jboss.netty.channel.SimpleChannelUpstreamHandler.handleUpstream(SimpleChannelUpstreamHandler.java:80) ~[na:na]
at org.jboss.netty.channel.DefaultChannelPipeline.sendUpstream(DefaultChannelPipeline.java:564) ~[na:na]
at org.jboss.netty.channel.DefaultChannelPipeline$DefaultChannelHandlerContext.sendUpstream(DefaultChannelPipeline.java:783) ~[na:na]
at org.jboss.netty.handler.stream.ChunkedWriteHandler.handleUpstream(ChunkedWriteHandler.java:149) ~[na:na]
at org.jboss.netty.channel.DefaultChannelPipeline.sendUpstream(DefaultChannelPipeline.java:564) ~[na:na]
at org.jboss.netty.channel.DefaultChannelPipeline$DefaultChannelHandlerContext.sendUpstream(DefaultChannelPipeline.java:783) ~[na:na]
at org.jboss.netty.handler.codec.http.HttpContentDecoder.messageReceived(HttpContentDecoder.java:104) ~[na:na]
at org.jboss.netty.channel.SimpleChannelUpstreamHandler.handleUpstream(SimpleChannelUpstreamHandler.java:80) ~[na:na]
at org.jboss.netty.channel.DefaultChannelPipeline.sendUpstream(DefaultChannelPipeline.java:564) ~[na:na]
at org.jboss.netty.channel.DefaultChannelPipeline$DefaultChannelHandlerContext.sendUpstream(DefaultChannelPipeline.java:783) ~[na:na]
at org.jboss.netty.channel.Channels.fireMessageReceived(Channels.java:302) ~[na:na]
at org.jboss.netty.handler.codec.replay.ReplayingDecoder.unfoldAndFireMessageReceived(ReplayingDecoder.java:522) ~[na:na]
at org.jboss.netty.handler.codec.replay.ReplayingDecoder.callDecode(ReplayingDecoder.java:506) ~[na:na]
at org.jboss.netty.handler.codec.replay.ReplayingDecoder.messageReceived(ReplayingDecoder.java:443) ~[na:na]
at org.jboss.netty.channel.SimpleChannelUpstreamHandler.handleUpstream(SimpleChannelUpstreamHandler.java:80) ~[na:na]
at org.jboss.netty.handler.codec.http.HttpClientCodec.handleUpstream(HttpClientCodec.java:77) ~[na:na]
at org.jboss.netty.channel.DefaultChannelPipeline.sendUpstream(DefaultChannelPipeline.java:564) ~[na:na]
at org.jboss.netty.channel.DefaultChannelPipeline.sendUpstream(DefaultChannelPipeline.java:559) ~[na:na]
at org.jboss.netty.channel.Channels.fireMessageReceived(Channels.java:274) ~[na:na]
at org.jboss.netty.channel.Channels.fireMessageReceived(Channels.java:261) ~[na:na]
at org.jboss.netty.channel.socket.nio.NioWorker.read(NioWorker.java:349) ~[na:na]
at org.jboss.netty.channel.socket.nio.NioWorker.processSelectedKeys(NioWorker.java:280) ~[na:na]
at org.jboss.netty.channel.socket.nio.NioWorker.run(NioWorker.java:200) ~[na:na]
at org.jboss.netty.util.ThreadRenamingRunnable.run(ThreadRenamingRunnable.java:108) ~[na:na]
at org.jboss.netty.util.internal.DeadLockProofWorker$1.run(DeadLockProofWorker.java:44) ~[na:na]
at java.util.concurrent.ThreadPoolExecutor.runWorker(Unknown Source) ~[na:1.7.0_45]
at java.util.concurrent.ThreadPoolExecutor$Worker.run(Unknown Source) ~[na:1.7.0_45]
at java.lang.Thread.run(Unknown Source) ~[na:1.7.0_45]
My settings.xml file is pretty vanilla:
<?xml version="1.0" encoding="UTF-8"?>
<settings xmlns="http://maven.apache.org/SETTINGS/1.0.0"
xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
xsi:schemaLocation="http://maven.apache.org/SETTINGS/1.0.0 http://maven.apache.org/xsd/settings-1.0.0.xsd">
<mirrors>
<mirror>
<id>nexus</id>
<mirrorOf>*</mirrorOf>
<url>http://ledmd059.lss.emc.com:8081/nexus/content/groups/public</url>
</mirror>
</mirrors>
<profiles>
<profile>
<id>nexus</id>
<!--Enable snapshots for the built in central repo to direct -->
<!--all requests to nexus via the mirror -->
<repositories>
<repository>
<id>central</id>
<url>http://central</url>
<releases><enabled>true</enabled></releases>
<snapshots><enabled>true</enabled></snapshots>
</repository>
</repositories>
<pluginRepositories>
<pluginRepository>
<id>central</id>
<url>http://central</url>
<releases><enabled>true</enabled></releases>
<snapshots><enabled>true</enabled></snapshots>
</pluginRepository>
</pluginRepositories>
</profile>
</profiles>
<activeProfiles>
<!--make the profile active all the time -->
<activeProfile>nexus</activeProfile>
</activeProfiles>
<servers>
<server>
<id>releases</id>
<username>deployment</username>
<password>deployment123</password>
</server>
<server>
<id>snapshots</id>
<username>deployment</username>
<password>deployment123</password>
</server>
<server>
<id>nexus</id>
<username>deployment</username>
<password>deployment123</password>
</server>
</servers>
</settings>
The rest of the stuff works: if I enter the dependency manually in the pom Maven finds and downloads it via Nexus.