for needles i generally use a sharps- or an applique needle....basting needles would be a bit large- a regular sewing needle the is the right size for the thread you are using is what you need- you are (piecing) ...
sharps are my favorite- generally John James- my applique needles are Roxannes.
any thread you piece with is ok to use- i use silk thread alot just because it is strong/fine/and smooth-it is expensive though- i also use cotton or aurafil---just depends on what i have that's the color i want to use & what i grab-