Your baby is still very young, remember that he has spent the first nine months of his life cosily cocooned in the womb. Newborn babies can often find the freedom of movement and space around them difficult to get used to. They can feel anxious and isolated at times.
I have often found that babies do not sleep well in Moses baskets, I am unsure why this is. It may be that the mattress is thin and the enclosed sides do not enable the baby to see what’s going on around them.
I usually suggest that you place a folded blanket or towel under the mattress at the baby’s head, this seems to make the baby more comfortable and can help with colic or digestion. Babies of this age will often be more unsettled in the evening, sometimes this is due to colic, but it seems that babies just need more attention at this time of day. It may also be that parents are becoming tired at this time of day and become more anxious about dealing with the baby, a baby will pick up on this anxiety, so this all creates a vicious circle.
There is also research that shows that babies all over the world cry for certain amount of time at this age, most of the crying occurs in the evening. It can not do any harm to cuddle your baby at this age, in fact babies love skin-to-skin contact. It will also not harm your baby to cry for short periods at this age, as this is the way babies communicate.
I understand that this is difficult to cope with at the moment, as you are losing your sleep and probably feeling very anxious about the baby, but this is normal behaviour for many babies. It is not something that you are doing wrong. There is nothing you can give your baby to help him sleep, although calm and relaxed parents can produce a calm, relaxed baby.
You could try baby massage using a carrier oil such as grape seed oil and one drop of lavender essence, this will help relax both you and the baby. Try not to worry, as the baby gets older he will sleep in a more regular pattern and as you get to know each other everything will seem so much easier.